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:

Blood Pressure Cuff

A device used to measure blood pressure, consisting of an adjustable cuff that can be inflated to constrict the arm and a gauge that measures pressure.

Pulse Oximeter

A medical device that noninvasively measures the saturation of oxygen in a patient's blood and changes in blood volume in the skin, providing a visual indication of the pulse rate.

Hypercapnia

Greater-than-normal amounts of carbon dioxide in the blood; also called hypercarbia.

Tracheal Suctioned

A medical procedure that removes secretions from the trachea to maintain airway patency and prevent infection.