1. Producing a sales forecast is primarily a financial task. Comment on this statement.
2. You have elected to fund additional needs for the next year with an increase in long-term debt. What, if any, problems might be associated with this decision?
3. Additional funds needed for next year are projected to be $50,000. The Current Ratio is 1.00; the Debt Ratio is at 75%, dividend payout ratio is 15%. Explain how you would analyze additional funding needed.
4. Briefly discuss the three general approaches to forecasting.
5. Why is forecasting important?
6. Distinguish between the cash budget and the capital budget.