Could you please paraphrase this?
1-
A negative value implies that the company has excess cash above its desired minimum. You can confirm this on the balance sheet by setting the external financing requirement to zero and adding the figure for external financing required to cash. You will find that assets equal liabilities plus owners’ equity in this circumstance; in other words, the balance sheet balances.
2-
Historical analysis helps decide for which financial statement items a percent-of-sales forecast might be appropriate. For example, a stable trend in the collection period would tell you that, unless you expect changes in the management of the accounts receivable, future collection periods should continue along this trend.
3-
This would tell me I had erred in constructing one or both of the forecasts. Using the same assumptions and avoiding accounting and arithmetic errors, estimated external financing required should equal estimated cash surplus or deficit for the same date.
11-
a- Negative numbers for taxes mean the company’s tax liability will fall by this amount. If the company does not have an accrued tax liability but has paid taxes in the recent past, it can file for a rebate of past taxes paid.
b- Cash balances exceed the minimum required level because the company has excess cash in these quarters. Cash balances are determined in these periods by first noting that external financing required is negative when cash is set at the minimum level. External financing required is then set to zero and cash becomes the balancing item equating assets to liabilities and owners’ equity.
c- When greater than zero, external financing required becomes the balancing item equating assets to liabilities and owners’ equity.
d- The company should easily be able to borrow the money. The amounts required are less than one-quarter of accounts receivable in each quarter.
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Place Order” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.