The Acme Stereo Company Had Capital of $24 Million at the Beginning

question 21

Multiple Choice

The Acme Stereo Company had capital of $24 million at the beginning of the year. At the end of the year, the firm had a capital stock of $20 million. Its

• A)net investment was some amount but we need more information to determine the amount.
• B)net investment was $4 million for the year.
• C)gross investment was zero.
• D)net investment was -$4 million for the year.
• E)depreciation was $4 million.

---

Definitions:

Forecasting Techniques

Various quantitative and qualitative methods used to predict future events or trends, such as demand for products or services.

Underlying Stability

The inherent steadiness or lack of variation in a system or process over time.

Sales Force Composite

A forecasting technique based on salespersons’ estimates of expected sales.

Salespersons' Estimates

Projections of future sales based on the assessments and experiences of a company's salesforce, often used in planning and budgeting.