Snowy Mountain Ski Lodge's Cash Budget for the Month of March

question 212

True/False

Snowy Mountain Ski Lodge's cash budget for the month of March 2019 shows a negative amount. Due to the fact that the months of January and February were quite lucrative and showed positive amounts, the finance manager will not borrow any money in the short term to cover for March's deficit.

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Definitions:

Operations Margin

The ratio of operating income to net sales, indicating the efficiency of a company's management by showing the proportion of revenue that turns into profit.

Return On Investment (ROI)

A financial metric used to evaluate the efficiency of an investment, calculated as the profit earned from an investment divided by its cost.

Operating Assets

Assets such as property, plant, and equipment used in the daily operations of a business to generate revenue.

Turnover

The total sales made by a business in a specific period, or the rate at which employees leave and are replaced within a company.