A. Assume that you have completed your plans and proformas for the next year of operations. Your proformas indicate that you will have $500,000 less cash than you think you will need.  What would you most likely do from the following list?  a. Develop a plan to increase accounts payable by $500,000 b. Make plans for a company holiday party c. Pay dividends to shareholders d. Develop a plan to increase accounts receivable   B. Assume that you have completed your plans and proformas for the next year of operations. Your proformas indicate that you will have $500,000 less cash than you think you will need.  What would you most likely do from the following list?  a. Reduce your volume projection in your sales forecast to save money b. Review all proforma expenses for accuracy c. Create a plan to reduce your average price for the next year d. Develop a plan to make additional principle payments on your bank loan during the next year

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 1cM
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A. Assume that you have completed your plans and proformas for the next year of operations. Your proformas indicate that you will have $500,000 less cash than you think you will need.  What would you most likely do from the following list? 

a. Develop a plan to increase accounts payable by $500,000
b. Make plans for a company holiday party
c. Pay dividends to shareholders
d. Develop a plan to increase accounts receivable
 

B. Assume that you have completed your plans and proformas for the next year of operations. Your proformas indicate that you will have $500,000 less cash than you think you will need.  What would you most likely do from the following list? 

a. Reduce your volume projection in your sales forecast to save money
b. Review all proforma expenses for accuracy
c. Create a plan to reduce your average price for the next year
d. Develop a plan to make additional principle payments on your bank loan during the next year
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