Under the percentage of sales forecasting method

Assignment Help Financial Management

Reference no: EM131924007

1. Under the percentage of sales forecasting method, which of the following increases by the same proportion that sales increases:

a) depreciation expense

b) interest expense

c) all of these answers increase by the same proportion that sales increases

d) retained earnings

e) income taxes

2. Under the percentage of sales forecast, the amount of dividends a company pays will affect the amount of ______ in next year’s balance sheet:

a) stockholder’s equity

b) assets

c) liabilities

d) both retained earnings and stockholder's equity

e) retained earnings

Reference no: EM131924007

Questions Cloud

What income replacement ratio : She wishes to have $100,000 left at age 90. What income replacement ratio can she obtain from this annuity if her final salary was $50,000?

What would happen to the confidence index : What would happen to the confidence index?

What is effective annual interest rate : A used car dealer advertises financing at 0% interest over 3 years with monthly payments. What is your effective annual interest rate?

Find the size of each payment : Assuming that the rate of interest is 8% and that if once default occurs, no further payments will be made, find the size of each payment.

Under the percentage of sales forecasting method : Under the percentage of sales forecasting method, which of the following increases by the same proportion that sales increases:

Use for debt when calculating cost of capital : If the company has a $45.9 million market value of equity, what weight should it use for debt when calculating the cost of capital?

Create graph to plot the total cost of each option : Create a graph to plot the total cost of each option and show the crossover point.

Compare required return on the stock calculated using CAPM : Compare the required return on the stock calculated using CAPM against it's historical return over the last 52 weeks,

Calculate the monthly mortgage payments on a PITI basis : Ben and Marie Gerrard, both in their mid-20s, Calculate monthly mortgage payments on PITI basis. Would they qualify for loan using 27% affordability ratio?

User Account

All Pages