Author Question: MDX Sales Corp is expecting a 10 increase in sales next year. MDX has an inventory balance of ... (Read 34 times)

leo leo · **on:** Jul 10, 2018

MDX Sales Corp is expecting a 10 increase in sales next year. MDX has an inventory balance of
1,000,000 and uses the percent of sales forecasting method.

Which of the following could explain
why the inventory forecast of 1,100,000 might be too high?
A) The growth in sales could be as high as 15.
B) The company is going to change its depreciation method in the coming year.
C) A fixed amount of inventory is required to do business, so inventory doesn't increase
proportionally with sales.
D) The current inventory balance of 1,000,000 is lower than usual because of a one-time end of
year fire sale.

Question 2

Which of the following is NOT a motive for a corporation to hold cash balances?

A) precautionary B) transactions C) speculative D) float

isabelt_18 · **Reply #1 on:** Jul 10, 2018

A FREE account is required to view all solutions!

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.

Answer Preview

Only 64% of students answer this correctly