Business, 21.05.2020 22:08, giany

We obtain the following 2018 forecasts of selected financial statement line items for Journey Company. $ millions in 2017 Actual 2018 Est. Net Sales $708,554 $740,439 Marketable securities 67,096 62,096 Long-term debt 346,558 308,437 Treasury stock (deducted from equity) 51,174 51,174 Cash generated by operations 57,696 Cash used for investing (14,908) Cash used for financing (54,660) Total net change in cash (11,872) Cash at beginning of period 51,141 Cash at end of period $39,269
Does forecasted cash deviate from the normal level for this company?

Answers: 3

Show answers

Answers

The forecasted cash is lower than the normal level (5.3% vs 7.22% of total sales). This results in a -26.59% change in the normal cash level.

Explanation:

2017 Actual 2018 Est. Net

Sales $708,554 $740,439

Marketable securities 67,096 62,096

Long-term debt 346,558 308,437

Treasury stock (deducted from equity) 51,174 51,174

Cash generated by operations 57,696

Cash used for investing (14,908)

Cash used for financing (54,660)

Total net change in cash (11,872)

Cash at beginning of period 51,141

Cash at end of period $39,269

the normal cash level for this company = $51,141 (ending cash 2017 or beginning cash 2018) / $708,554 (total sales 2017) = 7.22%

the cash level for 2018 = $39,269 (budgeted cash at end of 2018) / $740,439 (budgeted total sales 2018) = 5.3%

so the forecasted cash is lower than the normal level (5.3% vs 7.22% of total sales)

the percent change = (5.3% - 7.22%) / 7.22% = -26.59%

answered: Guest

answer; /// i do believe the correct answer is (30,000);

answered: Guest

The business cycle is the periodic but irregular up-and-down movement in economic activity, measured by fluctuations in real gross domestic product (gdp) and other macroeconomic variables. a business cycle is typically characterized by four phases—recession, recovery, growth, and decline—that repeat themselves over time. economists note, however, that complete business cycles vary in length. the duration of business cycles can be anywhere from about two to twelve years, with most cycles averaging six years in length. some business analysts use the business cycle model and terminology to study and explain fluctuations in business inventory and other individual elements of corporate operations. but the term "business cycle" is still primarily associated with larger (industry-wide, regional, national, or even international) business trends.

Other questions on the subject: Business

Business, 21.06.2019 17:00, santos200154

The typical consumer's food basket in the base year 2015 is as follows: 30 chickens at $4 each 10 hams at $5 each 10 steaks at $8 each a chicken feed shortage causes the price of chickens to rise to $5.00 each in the year 2016. hams rise to $7.00 each, and the price of steaks is unchanged. a. calculate the change in the "cost-of-eating" index between 2015 and 2016. year cost of the basket 2015 $ 2016 $ instructions: enter your responses rounded to one decimal place. the official cost-of-eating index has by %. b. suppose that consumers are completely indifferent between two chickens and one ham. for this example, how large is the substitution bias in the official "cost-of-eating" index? the in the cost-of-eating index is %. the of inflation in the cost of eating reflects substitution bias.

Answers: 3

continue

Business, 22.06.2019 13:50, xcoder1732

Suppose portugal has 700 workers and 26,000 units of capital, and france has 18,000 workers and 700 units of capital. technology is identical in both countries. assume that wine is the capital-intensive good and cloth is the labor-intensive good. which of the following statements is correct if the nations start trading with each other? a) wages will increase in portugal. b) rental rates in france will increase. c) wages in france will decrease. d) rental rates in portugal will increase.

Answers: 2

continue

Business, 22.06.2019 14:00, gcristhian8863

Which of the following would be an accurate statement about achieving a balanced budget

Answers: 1

continue

Business, 22.06.2019 18:30, thomaskilajuwon

Afarmer is an example of what kind of producer?

Answers: 2

continue

Do you know the correct answer?

We obtain the following 2018 forecasts of selected financial statement line items for Journey Compan...