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3 years ago

Overview of financial planning

Business

1 answer:

VMariaS [17]3 years ago

6 0

Answer:

1. Operating plan.

2. Operating plan.

3. Financial plan.

4. Dividend policy.

5. B and C.

Explanation:

1. Operating plan: provides detailed implementation guidance for a firm's operations, as well as a forecast of the company's expected future free cash flows.

2. Operating plan: provides the inputs necessary for a risk management evaluation using sensitivity analysis, scenario analysis, or simulations.

3. Financial plan: Is based on knowledge of the amount of funds necessary to compensate the firm's shareholders, and the mix of debt and equity capital used to finance the firm.

4. Dividend policy: sets forth specific targets for cash or share distributions to the firm's shareholders.

Capital structure: describes specific targets for the mix of debt and equity used to finance a firm.

Financial planning can be defined as the process of estimating the amount of capital required for the smooth operations of the business and determine how to achieve the firm's set goals and objectives.

Hence, the following statements are true about financial planning;

I. Once a firm's forecasted financial statements are prepared, the firm must determine how much capital it will need to support these plans.

II. Management must monitor operations after implementing a financial plan to detect deviations from the plan and adjust accordingly.

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c. Describe the role a sales person would play in selling this type of product. How much help would customers be likely to need

arlik [135]

Answer:

They would help the product that they are selling sell better and would provide examples that would help the product sell better. The better the product sells the better the sales person gets paid. they would likely need not much help sense a sales person is mostly just for the company to sell their product or service well.

Explanation:

I hope this helped

4 0

3 years ago

Suppose the marginal propensity to consume is equal to 0.75. If the government lowers tax rates and tax revenue falls by $100 mi

vovikov84 [41]

Answer:

$100; $75

Explanation:

Given that:

Tax revenue falls by 100 million dollars
marginal propensity to consume (MPC) is 0.75.

Due to the fall in tax revenue, disposable income will increase by the same amount, that is, $100 million.

Consuption spending will initially increase by $75 million, as shown below:

= MPC × tax revenue fall

= 0.75 × $100,000,000 = $75,000,000

6 0

3 years ago

Deal Leasing leased equipment to Hand Company on January 1, 2021. The leased equipment's book value is $420,000 with no estimate

anygoal [31]

Answer:

The requirements are missing, so I looked for a similar question. This is a financial lease since the PV of the lease payments represents 97% of the asset's value.

January 1, 2021, equipment leased from Deal leasing

Dr Right of use asset 405,541.20

Cr Lease liability 405,541.20

the right of use asset = PV of lease payments = $60,000 x 6.75902 (PV annuity due, 10%, 10 periods) = $405,541.20

January 1, 2021, first lease payment

Dr Lease liability 60,000

Cr Cash 60,000

December 31, 2021, depreciation expense on leased asset

Dr Depreciation expense 40,554.12

Cr Accumulated depreciation 40,554.12

depreciation expense = $405,541.20 / 10 = $40,554.12

December 31, 2021, interest expense on asset lease

Dr Interest expense 34,554.12

Cr Interest payable 34,554.12

interest expense = ($405,541.20 - $60,000) x 10% = $34,554.12

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3 years ago

Which of the following statements is false? A. Cash dividends should be recorded as a liability when they are declared by the bo

xenn [34]

Answer:

The answer is: B) FICA taxes withheld from employees' payroll checks should never be recorded as a liability since the employer will eventually remit the amounts withheld to the appropriate taxing authority.

Explanation:

FICA taxes (or payroll taxes) are based on an employee's salary. Both employees and employer pay FICA taxes for Social Security and Medicare. Employers withhold these taxes from their employees' paychecks, and then pays them to the Internal Revenue Service (IRS).

3 0

3 years ago

When an investigation shows that ill people have something in common to explain why they all got the same illness, the group of

FromTheMoon [43]

Answer:

Outbreak

Explanation:

Outbreak has been defined as the sudden increase in occurence of a particular disease in a specific period of time and at a specific place. When people have something in common to explain why they all got thesame illness, it is called an outbreak. Any disease becomes an outbreak when it occurs in greater numbers than expected for a given region or community during a specified period of time or season.

7 0

3 years ago