Projections Flashcards
1
Q
Riskiest Months
A
Are High borrowings and high inventory, check loan relative to receivable to determine reliance on inventory.
2
Q
Projecting AR
A
Estimate AR days multiply by one days sales.
3
Q
Projecting Inventory
A
Estimate days COGS. and multiply one day’s average COGS including depreciation expense.
4
Q
Projecting Accounts Payb
A
Estimate Payable Days and multiply by one day’s COGS.
5
Q
Estimate Interest Expense
A
Divide CPLT
6
Q
To Project Inventory
A
Estimated Inventory days x COGS(Purchases)/365
7
Q
Estimate Accrued Expenses
A
Take a percentage of Operating Exp.
8
Q
Project Tax Liabilities
A
Deferred Tax Liabilities as a percentage of projected capital Expenditures
