Mid-Term

Question 1

capex should generate for a firm (5)

Answer 1

1. a return on investment
2. better products
3. more/ differentiated products
4. better quality
5. more efficient processes

Question 2

Which break down should be considered when building the sales forecast?

Answer 2

per territory, per seasonal, per customer

Question 3

Briefly explain the difference between a budget and a budget income statement

Answer 3

budgeted income statements stands as a benchmark to measure performance, and can see how the company is doing. While the budget is fixed for the past years.

Question 4

Five 5 examples that causes a negative impact over cash flow

Answer 4

1. late payment
2. declining sales
3. a lot of inventory
4. bad investments
5. expensive loans