Question #1 (1 point) All of the following are major disadvantages of the percent-of-sales method of...

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Question #1 (1 point) All of the following are major disadvantages of the percent-of-sales method of financial forecasting except The computerized models needed for forecasting are not user-friendly It assumes everything in the business varies as a constant percent of sales It cannot account for business parameters that have a nonlinear relationship to sales The model requires excessive modification to reflect the real-world business parameters Question #2 (1 point) George Inc. only sells one product and they project to sell 4500 units next year at $20 each.
	
Document Preview: Question #1 (1 point)All of the following are major disadvantages of the percent-of-sales method of financial forecasting exceptThe computerized models needed for forecasting are not user-friendlyIt assumes everything in the business varies as a constant percent of salesIt cannot account for business parameters that have a nonlinear relationship to salesThe model requires excessive modification to reflect the real-world business parametersQuestion #2 (1 point)George Inc. only sells one product and they project to sell 4500 units next year at $20 each. They currently have 230 units in stock which cost $11 per unit to manufacture last year. Next year, the cost per unit to manufacture is expected to rise to $12 per unit. They desire to have 15% of unit sales in stock at the end of the year. How many units will George Inc. need to produce next year?5245472049455170Question #3 (1 point)In 2012, Murray Corp. had sales of $700,000, a profit margin of 5%, common stock of $120,000 and retained earnings of $230,000. What was Murray’s return on equity?5%10%15%20%Question #4 (1 point)Due to inflation, profit may be a result of increasing prices instead of actual company performance.TrueFalseQuestion #5 (1 point)Chelsea Lighting Inc. has beginning inventory of 18,000 units, will sell 60,000 units for the month, and desires to reduce ending inventory to 50% of beginning inventory. How many units should Chelsea produce?42,00060,00033,00051,000Question #6 (1 point)The following data can be found on Pinkerton Inc.'s 2012 balance sheet: Cash $45,000, Marketable Securities $70,000, Accounts Receivable $500,000, Inventory $525,000, Net Plant and Equipment $400,000, Accounts Payable $75,000, and Notes Payable $350,000. Please calculate Pinkerton Inc.'s Current Ratio.0.212.681.452.39Question #7 (1 point)When employing financial ratio analysis, it is important to remember that accounting...

Robert · Accepted Answer

Question #1 (1 point) 
All of the following are major disadvantages of the percent-of-sales method of 
financial forecasting except 
 The computerized models needed for forecasting are not user-friendly 
 It assumes everything in the business varies as a constant percent of sales 
 
It cannot account for business parameters that have a nonlinear relationship to 
sales 
 
The model requires excessive modification to reflect the real-world business 
parameters 
 
Question #2 (1 point) 
George Inc. only sells one product and they project to sell 4500 units next year at 
$20 each. They currently have 230 units in stock which cost $11 per unit to 
manufacture last year. Next year, the cost per unit to manufacture is expected to 
rise to $12 per unit. They desire to have 15% of unit sales in stock at the end of the 
year. How many units will George Inc. need to produce next year? 
 5245 
 4720 
 4945 
 5170 
 
Question #3 (1 point) 
In 2012, Murray Corp. had sales of $700,000, a profit margin of 5%, common stock 
of $120,000 and retained earnings of $230,000. What was Murray’s return on 
equity? 
 5% 
 10% 
 15% 
 20% 
 
Question #4 (1 point) 
Due to inflation, profit may be a result of increasing prices instead of actual company 
performance. 
 True 
 False 
 
Question #5 (1 point) 
Chelsea Lighting Inc. has beginning inventory of 18,000 units, will sell 60,000 units 
for the month,

Question #1 (1 point) All of the following are major disadvantages of the percent-of-sales method of financial forecasting except The computerized models needed for forecasting are not user-friendly...

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