Operating breakeven analysis deals with

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Reference no: EM131905376

1. Additional funds needed (AFN) will be negative if:?

a. ?the plant and equipment of the firm is increased to achieve additional growth.

b. ?the amount of internally generated funds is more than sufficient to support the forecasted increase in sales.

c. ?there are economies of scale in the use of many types of assets.

d. ?assets that can be acquired only in large, discrete amounts are acquired.

e. ?the amount of internal financing expected is decreased because of an increase in operations of the firm.

2. Operating breakeven analysis deals with:?

a. ?the revenues and expenses associated with a firm's normal production and selling operations.

b. ?the assets and liabilities recorded in the pro forma balance sheet.

c. ?the interest payments to bondholders and the dividend payments to preferred stockholders.

d. ?the noncash items included in operating activities.

e. ?the net cash flows from operating activities recorded in the statement of cash flows.

Reference no: EM131905376

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