If a Firm Is Planning an Expansion or Changes in How

question 90

Multiple Choice

If a firm is planning an expansion or changes in how it manages its inventory, long-term financial planning can help determine the impact on the firm's

• A)debt financing.
• B)free cash flows.
• C)capital investment.
• D)all of the above

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Definitions:

Direct Labor-Hours

The total hours worked by employees directly involved in the manufacturing process or providing services.

Ending Cash Balance

The amount of cash a company has at the end of a given financial period, reflecting all cash inflows and outflows.

Budgeted Cash Receipts

Projected cash inflows for a future period, based on sales forecasts and other receipts.

Budgeted Cash Disbursements

An estimate of all cash payments that a business plans to make over a specific period, including operating expenses, purchase of assets, and other payouts.