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Author Question: Which of the following statements is correct? (Read 39 times)

Caileynorton

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on: Aug 7, 2023
Which of the following statements is correct?

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When we use the AFN formula, we assume that the ratios of assets and liabilities to sales (A*/S0 and L*/S0) vary from year to year in a stable, predictable manner.


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Firms whose fixed assets are "lumpy" frequently have excess capacity, and this should be accounted for in the financial forecasting process.


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For a firm that uses lumpy assets, it is impossible to have small increases in sales without expanding fixed assets.


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When fixed assets are added in large, discrete units as a company grows, the assumption of constant ratios is more appropriate than if assets are relatively small and can be added in small increments as sales grow.

Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
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Marked as best answer by Caileynorton on Aug 7, 2023

gcurrens

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Reply #1 on: Aug 7, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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Only 39% of students answer this correctly


Caileynorton

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Reply 2 on: Aug 7, 2023
:D TYSM

carojassy25

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Reply 3 on: Yesterday
Excellent

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