Describe the two major types of pro forma financial statements, and explain the role they play in financial planning.
What will be an ideal response?
Answers will vary. The budgeting process provides financial managers with much of the information they need for financial planning. The budgeted income statement and budgeted balance sheet are two key financial planning tools. Also called pro forma financial statements, they provide a framework for analyzing the impact of the firm's plans on the financing needs of the company. The budgeted income statement uses information from the sales budget and various cost budgets (as well as other assumptions) to develop a forecast of net income for the planning period. This can help the firm evaluate how much internal financing (funds generated by earnings) will be available. The budgeted balance sheet forecasts the types and amounts of assets a firm will need to implement its future plans. It also helps financial managers determine the amount of additional financing (liabilities and owners' equity) the firm must arrange to acquire those assets.
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Employees who always do things in their own self-interest in spite of organizational policies or culture are often called "bad apples."
Answer the following statement true (T) or false (F)
Chinese teenagers prefer things from __________ to local products.
Fill in the blank(s) with the appropriate word(s).
Expectations are always positive
Indicate whether the statement is true or false
______ is a system used by companies to systematically plan and control their logistics and product distribution activities through generating a time-phased, inventory-replenishment plan to manage and minimize inventories in the supply chain.
A. Material requirements planning (MRP) B. Manufacturing resource planning (MRP II) C. Enterprise resource planning (ERP) D. Distribution requirements planning (DRP)