« previous next »

Author Question: Shawn Jones was reading the business plan of New Venture Fitness Drinks, and noticed that prior to ... (Read 38 times)

student77

  • Hero Member
  • *****
  • Posts: 567
on: Jul 6, 2018
Shawn Jones was reading the business plan of New Venture Fitness Drinks, and noticed that prior to its financial forecasts, New Venture Fitness Drinks placed an explanation of the sources of the numbers for the forecast and the assumptions used to
 
  generate them. This explanation is called a(n) ________.
  A) forecast sheet
  B) forecast hypothesis
  C) estimate statement
  D) assumption sheet
  E) hypothesis sheet

Question 2

What is ratio analysis? Why is it important?
 
  What will be an ideal response?


kmb352

  • Sr. Member
  • ****
  • Posts: 319
Reply #1 on: Jul 6, 2018
Answer to Question 1

D

Answer to Question 2

The most practical way to interpret or make sense of a firm's historical and pro forma financial statements is through ratio analysis. The ratios described in the textbook are divided into profitability ratios, liquidity ratios, and overall financially stability ratios. These ratios provide a means of interpreting the historical and pro forma financial ratios for a firm.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Pregnant women usually experience a heightened sense of smell beginning late in the first trimester. Some experts call this the body's way of protecting a pregnant woman from foods that are unsafe for the fetus.

Did you know?

About one in five American adults and teenagers have had a genital herpes infection—and most of them don't know it. People with genital herpes have at least twice the risk of becoming infected with HIV if exposed to it than those people who do not have genital herpes.

Did you know?

Allergies play a major part in the health of children. The most prevalent childhood allergies are milk, egg, soy, wheat, peanuts, tree nuts, and seafood.

Did you know?

Only one in 10 cancer deaths is caused by the primary tumor. The vast majority of cancer mortality is caused by cells breaking away from the main tumor and metastasizing to other parts of the body, such as the brain, bones, or liver.

Did you know?

Though the United States has largely rejected the metric system, it is used for currency, as in 100 pennies = 1 dollar. Previously, the British currency system was used, with measurements such as 12 pence to the shilling, and 20 shillings to the pound.

The mollusc body plan. The mollusc body plan.
Andrea Palladio, Plan of main floor (piano nobile), Villa La Rotunda. Andrea Palladio, Plan of main floor (piano nobile), Villa La Rotunda.
Basic Food Group Choices for a 1,200 Calorie Eating Plan Basic Food Group Choices for a 1,200 Calorie Eating Plan
Plan of the Megaron of the Pylos Palace Plan of the Megaron of the Pylos Palace
By age 45 or 50, nearly everyone needs glass especially for reading By age 45 or 50, nearly everyone needs glass especially for reading
Body plan of a lancelet Body plan of a lancelet
Video: Stomach peristalsis - Movement of Food Through the Small Intestine

For a complete list of videos, visit our video library