Given the Forecast and Booked Orders Shown in the Table

question 15

Multiple Choice

Given the forecast and booked orders shown in the table, and a beginning inventory of 120, what is the projected ending inventory for period 4? The company operates with a lot size of 144. $$\begin{array} { | l | c | c | c | c | } \hline \text { Period } & 1 & 2 & 3 & 4 \\\hline \text { Forecasted Demand } & 500 & 450 & 400 & 600 \\\hline \text { Booked Orders } & 520 & 400 & 325 & 450 \\\hline \text { Projected ending inventory } & & & & \\\hline \text { Master production schedule } & & & & \\\hline \text { Available to Promise } & & & & \\\hline\end{array}$$

• A)34
• B)38
• C)46
• D)22

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Definitions:

Pro Forma Statements

Financial statements that project the future financial position of a company, based on current data and assumptions about future activity.

Payout Ratio

The proportion of earnings paid out as dividends to shareholders, often expressed as a percentage of the company's total net income.

Short-term Debt

Financial obligations that are due to be paid within one year, often used as part of a company's operational financing strategy.

Capital Intensity Ratio

A measure of how much capital is required to produce one unit of output, indicating the extent of capital employed in production.