Exam 11: Forecasting Financial Requirements

The cash budget is concerned only with dollars received and dollars paid out.

D&R Products forecast that it will require $10,000 for equipment and $40,000 for a building. These items will be reflected in the balance sheet as _____.

Working capital refers to current assets which include the following except

What are the asset categories that constitute working capital?

The difference between the statement of cash flows and the pro forma statement of cash flows is that the latter deals with historical data and the former deals with projections into the future.

A simple listing of expected cash inflows and outflows provides the entrepreneur with a(n)

In a 2009 survey Inc.com asked its readers "What is the hardest part of owning a business right now?" The leading problem cited was

The income statement gives us all the information we need to know to determine the firm's cash flow.

Unless the owner's personal living expenses during the initial period of operation are part of the business's capitalization, they need not be considered in the financial plan.

Winston Wolfe believes it is important to produce a profit and loss statement every

When developing pro forma cash flow statements the following numbers must be scrutinized carefully except

The results of forecasting asset requirements for a startup business will only be as good as its

The following tactics represent bootstrapping except

Profits reward an owner for investing in a company and constitute a primary source of financing for future growth.

A business plan should specify that at least _____ of the firm's financing should come from equity, and the rest will come from debt.

The term net working capital means current assets less current liabilities and is a measure of a company's liquidity.

A wholesale sunglass company should break down its annual cash budget into shorter time units because