When doing a forecast of the Balance Sheet:
7. Question 7 When doing a forecast of the Balance Sheet: 1 point In the forecast, cash and credit are always the last items we fill in. …
Imagine now that sales are €720 like in the previous question, days of collection are 120 and days of inventory are 90. The company manages a just-in-time delivery that reduces dramatically days of inventory to 10. At the same time, the marketing department, to win new customers and reward existing customers, increases the days of collection to 200. Therefore:
5. Question 5 Imagine now that sales are €720 like in the previous question, days of collection are 120 and days of inventory are 90. The company manages a just-in-time…
If sales now grow 20% and days of collection are 120 like in question 1, then:
4. Question 4 If sales now grow 20% and days of collection are 120 like in question 1, then: 1 point Receivables also grow 20% and thus will be…
For questions 1 to 5: A commercial company initially sells €600 a year. Sales are uniform. COGS = 70% of sales. Question: If receivables = €200, what are the days of collection?
1. Question 1 For questions 1 to 5: A commercial company initially sells €600 a year. Sales are uniform. COGS = 70% of sales. Question: If receivables = €200, what…
If long-term debt is €800 in 2015, and I pay back 10% every year of the original €1,000 loan that I received in 2013, and in 2016 I ask for a new loan of €100, then the total amount in long-term debt at the end of 2016 will be:
11. Question 11 If long-term debt is €800 in 2015, and I pay back 10% every year of the original €1,000 loan that I received in 2013, and in 2016…
If equity in 2015 = €600, net income in 2016 = €200 and dividends paid in 2016 = €50, what is the equity at the end of 2016?
10. Question 10 If equity in 2015 = €600, net income in 2016 = €200 and dividends paid in 2016 = €50, what is the equity at the end of…
If a company invests as much in fixed assets as it charges in the depreciation per year, then:
9. Question 9 If a company invests as much in fixed assets as it charges in the depreciation per year, then: 1 point The fixed assets in the balance…
The days of collection change to 90 days. You will therefore have in receivables:
3. Question 3 The days of collection change to 90 days. You will therefore have in receivables: 1 point €100 €300 €250 €150
We use cash or credit as a figure to plug in in order to balance the Balance Sheet. If total assets > (total liabilities + equity), where will the difference go?
8. Question 8 We use cash or credit as a figure to plug in in order to balance the Balance Sheet. If total assets > (total liabilities + equity), where…
When we do a forecast of the P&L:
6. Question 6 When we do a forecast of the P&L: 1 point The line of credit in the P&L is always below the gross margin. We only…
