Jefferson City Computers Has Developed a Forecasting Model to Estimate

question 21

Multiple Choice

Jefferson City Computers has developed a forecasting model to estimate its AFN for the upcoming year.All else being equal,which of the following factors is most likely to lead to an increase of the additional funds needed (AFN) ?

• A) A sharp increase in its forecasted sales.
• B) A sharp reduction in its forecasted sales.
• C) The company reduces its dividend payout ratio.
• D) The company switches its materials purchases to a supplier that sells on terms of 1/5,net 90,from a supplier whose terms are 3/15,net 35.
• E) The company discovers that it has excess capacity in its fixed assets.

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Definitions:

Expected Cell Counts

Predicted frequencies in cross-tabulation tables that are used in statistics to calculate the expected value under the null hypothesis in chi-squared tests.

Two-way Table

A statistical table that displays data for two variables, showing the relationship or interaction between these variables in a matrix format.

Grand Total

The sum of all numbers or quantities in a series, often the final total in a table of numbers.

Column Portions

Segments or parts of a column in a table or spreadsheet, often referred to in data analysis.