Operating plan-financial plan and spontaneous liabilities

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Define each of the following terms:

a. Operating plan; financial plan

b. Spontaneous liabilities; profit margin; payout ratio

c. Additional funds needed (AFN); AFN equation; capital intensity ratio; self-supporting growth rate

d. Forecasted financial statement approach using percent of sales

e. Excess capacity; lumpy assets; economies of scale

f. Full capacity sales; target fixed assets/sales ratio; required level of fixed assets

Reference no: EM131013421

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