Jefferson City Computers Has Developed a Forecasting Model to Estimate

question 21

Multiple Choice

Jefferson City Computers has developed a forecasting model to estimate its AFN for the upcoming year.All else being equal,which of the following factors is most likely to lead to an increase of the additional funds needed (AFN) ?

• A) A sharp increase in its forecasted sales.
• B) A sharp reduction in its forecasted sales.
• C) The company reduces its dividend payout ratio.
• D) The company switches its materials purchases to a supplier that sells on terms of 1/5,net 90,from a supplier whose terms are 3/15,net 35.
• E) The company discovers that it has excess capacity in its fixed assets.

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Definitions:

Workplace Conflict

A scenario in which disagreements or disputes arise among employees or between employees and management within a workplace.

Management

The process of dealing with or controlling things or people, often in the context of businesses and organizations.

Unionization

The process of forming or joining a labor union, where workers unite to negotiate collectively with employers over wages, working conditions, and other employment matters.

Productivity

The ratio of a firm’s outputs (goods and services) divided by its inputs (people, capital, materials, energy).