Chua Chang & Wu Inc

question 12

Multiple Choice

Chua Chang & Wu Inc. is planning its operations for next year, and the CEO wants you to forecast the firm's additional funds needed (AFN) . The firm is operating at full capacity. Data for use in your forecast are shown below. Based on the AFN equation, what is the AFN for the coming year?

• A) -$14,440
• B) -$15,200
• C) -$16,000
• D) -$16,800
• E) -$17,640

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Definitions:

CISG

The United Nations Convention on Contracts for the International Sale of Goods, a treaty that establishes a uniform legal framework for international commerce.

Conforming Goods

Products that meet the specifications and standards outlined in a contract of sale.

Perfect Tender Rule

A principle in the Uniform Commercial Code requiring goods delivered under a sales contract to exactly meet the terms of the agreement.

Norms

Established standards of behavior or guidelines that are considered normal within a society or group.