Use the "percent of sales method" of preparing pro forma financial statements to determine the
projection for next year's accounts receivable.
Make the following assumptions: current year's sales
are $45,450,000; current year's cost of goods sold is $26,950,000; sales are expected to rise by 20%.
The firm's investment in accounts receivable in the current year is $8,600,000. The firm's marginal
tax rate is 35%. What is the projection for next year's accounts receivable?
A) $8,772,000 B) $10,320,000 C) $9,575,000 D) $11,345,000
B
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The performance measurement system that combines information from most or all of the possible sources, is known as:
A. the critical incidents technique. B. the behavioral observation scale. C. management by objectives. D. a 360-degree performance appraisal. E. upward feedback.
________ competition can destroy entire product categories when a major innovation occurs, so it requires attention, especially for long-run planning
A) Product form B) Product category C) Generic D) Budget