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.

---

Definitions:

Corpulent Tourists

Overweight or obese travelers who may have specific needs or considerations in the tourism industry.

Santorini Caldera

A large, mostly submerged caldera in the Aegean Sea, created by a volcanic eruption, and is part of the island of Santorini, Greece.

Standard Deviation

A measure of the amount of variation or dispersion in a set of values, indicating how spread out the values are from the average.

Revenue Management

The strategic analysis and optimization of sales growth and profitability, particularly through pricing and inventory control.