User Account

All Pages

Percent of sales model

Assignment Help Finance Basics
Reference no: EM131627206

Topic 1 - Financial Planning

The percent of sales model uses historical information to develop certain ratios such as sales to inventory or finished products, sales to debtors/receivables, and sales to cash. Sales are then forecasted based on the ratios. The percent of sales model is a financial planning model that assumes that most income statement and balance sheet accounts vary proportionally with sales.  This model has a weakness related to working capital. What is this weakness and how does it affect financial planning?

Reference no: EM131627206

Questions Cloud

How good management of change-over-set-up brings benefits : Using examples show how good management of "change-over/set-up" brings benefits to the company.
Evaluate the return relative to its current income : Mary and Nick Stalcheck have an investment portfolio containing four investments. It was developed to provide them with a balance between current income.
Provide advice for an organic cigarette firm : You are asked to provide advice for an organic cigarette firm.
Identify and assess at least three professional skills : Information professionals with adequate skills are required to maintain the business continuity of database services in an organization.
Percent of sales model : The percent of sales model is a financial planning model that assumes that most income statement and balance sheet accounts vary proportionally with sales.
The level of integration of operations with other parts : The level of integration of operations with other parts of the company can be crucial for its success.
Select at least three security vulnerabilities : Describe how often these measures should be performed and the order in which each should be performed.
Percentages for different line items : In a pro forma income statement, why would a finance manager make changes in the prior year's percentages for different line items?
Describe the actions antonio should take to rebalance : Antonio Cassini is using a constant-ratio plan to rebalance his portfolio. He has 300 shares of an aggressive growth stock priced at €50 (Euro).

Reviews

Write a Review

Finance Basics Questions & Answers

  Describe the product or service offering

Evaluate the potential growth rate. Look for information on similar products or services to come up with a growth rate over three years; this may be adjusted in later revisions.

  Find its bulk modulus of elasticity

A liquid in a cylinder has a volume of 1200 cm3 at 1.25 MPa and a volume of 1188 cm3 at 2.50 MPa. Determine its bulk modulus of elasticity.

  How much would your capital gain be negative if a loss

If you had bought the bond the previous day, how much would your capital gain be (negative if a loss)? Select a Treasury bill maturing at least 20 weeks in the future. What is its yield to maturity?

  What the audit would involve

Ron and Jessica (husband and wife) have been running their business as a partnership formore than twenty years. Both of them are near retirement age but they feel so attached with theirbusiness that they would not like to sell it

  What does dynan mean by the size of the fed''s balance sheet

Is there a connection between the Fed's balance sheet having doubled and the large increase in bank reserves at the Fed? Briefly explain.

  Explain the role of staffing to support an organization

Explain the role of staffing to support an organization's strategy and improve productivity. Develop a model for staffing an organization that supports the firm's Human Resources Management strategy and sustains productive operations.

  Multinational subsidiary host balance of payments

You're chief executive officer of multinational's subsidiary in developing host country. The subsidiary has been in business for about 8 years, making electric motors for the host country's domestic market, with mediocre financial results.

  How much are you willing to pay for one share of this

leslies unique clothing stores offers a common stock that pays an annual dividend of 1.70 a share. the company has

  How history might provide an alternative explanation

Briefly describe how history might provide an alternative explanation for the reduction in anxiety.- Briefly describe how instrumentation might provide an alternative explanation for the reduction in anxiety.

  An investment generates 10000 per year for 25 years if you

an investment generates 10000 per year for 25 years. if you can earn 10 percent on other investments what is the

  Explain the factors that a company should consist

Explain the factors that a company should consist

  You are out shopping for a new car you have found a toyota

you are out shopping for a new car. you have found a toyota sienna priced at 34400. the dealer has told you that if you

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd