1. To determine the additional funds needed to support the level of forecasted operations,______
A subtract the spontaneously generated funds from the sales forecast
B subtract all the operating costs from the sales forecast
C add the funds generated internally to the spontaneously generated funds
D subtract the funds generated internally from the required funds
E add the spontaneously generated funds to the retained earnings plus
2. A firm projects a small increase in sales, but still requires a significant increase in plant and equipment. Which of the following is a reason for such a large financial commitment?
A Decrease in economies of scale
B Increase in fixed operating costs
C Decrease in financing feedbacks
D Increase in lumpy assets
E Decrease in spontaneously generated funds