Questions from Financial Management


Q: What are some of the production costs that are tied to the

What are some of the production costs that are tied to the sales forecast?

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Q: Why are currency exchange rates constantly changing over time?

Why are currency exchange rates constantly changing over time?

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Q: Why should a company be concerned about a change in future exchange

Why should a company be concerned about a change in future exchange rates if it has already delivered and sold product in a foreign country?

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Q: Why should a company attempt to speed up its receivables and slow

Why should a company attempt to speed up its receivables and slow down its payables?

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Q: What is the difference between a secured and an unsecured loan?

What is the difference between a secured and an unsecured loan?

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Q: Why can excess cash be an opportunity cost for a company?

Why can excess cash be an opportunity cost for a company?

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Q: How can a company “encourage” its slow-paying customers

How can a company “encourage” its slow-paying customers to pay their outstanding bills?

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Q: In a pro forma income statement, why would a finance manager

In a pro forma income statement, why would a finance manager make changes in the prior year’s percentages for different line items? Give an example of a line item that you would expect to vary in perc...

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Q: For the prior three years, sales for California Cement Company have

For the prior three years, sales for California Cement Company have been $20,011,000 (2011), $21,167,000 (2012), and $22,923,000 (2013). CCC uses the prior two year’s average growth rate (i.e. the ge...

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Q: What is an economic order quantity? What cost does it attempt

What is an economic order quantity? What cost does it attempt to minimize?

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