The Manager of a Company Believed That Her Company's Profits

question 87

Short Answer

The manager of a company believed that her company's profits were following an exponential trend. She used Microsoft Excel to obtain a prediction equation for the logarithm (base 10) of profits:
log₁₀(Profits) = 2 + 0.3X
The data she used were from 1993 through 1998, coded 0 to 5. The forecast for 1999 profits is_____ .

Understand the factors that influence the cash cycle and operating cycle.

Calculate cash surplus or deficit based on cash flow data.

Identify sources of cash for a firm.

Analyze the impact of payment policies on the cash cycle.

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Definitions:

Operating Performance

A measure of a company's efficiency and effectiveness in generating profits from its operations.

Entry-level Employees

Refers to employees who are at the initial stage of their career path, typically with less experience and holding positions that require minimal specialized skills.

Financial Rewards

Monetary benefits provided to employees or individuals as compensation or incentive.

Financing

The process of providing or obtaining the funds necessary for investment, expansion, or operating activities.