Cash budgeting can be employed effectively by management

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Reference no: EM131924015

Starbucks had long-term debt of $200 million at the end of 2017 and sales are expected to grow by 20% in 2018. Net New Financing is expected to be $20,000 for 2018 and will be satisfied through the issuance of preferred stock. Compute the forecasted long-term debt at the end of 2018 using the percent of sales method.

a) not enough information is provided

b) $200 million

c) $220 million

d) $240 million

e) $160 million

2. Cash budgeting can be employed effectively by management to _____ .

a) control retained earnings

b) aid them in capital budgeting

c) identify potential cash flow problems in advance

d) coordinate cash and deferred expenses

Reference no: EM131924015

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