Question
13. The forecast for retained earnings on the 2019 balance sheet can be determined as 2018 retained earnings plus projected 2019 after-tax earnings less projected
13. The forecast for retained earnings on the 2019 balance sheet can be determined as 2018 retained earnings plus projected 2019 after-tax earnings less projected 2019 dividends. True or False
14. You are estimating your companys external financing needs for the next year. Your first-pass pro forma financial statements showed a large financing deficit for next year. Which of the following changes to your companys operating plan would reduce the financing deficit if incorporated in revised pro forma financial statements?
A. Increase the sales growth rate
B. Increase cost of goods sold as a percentage of sales
C. Reduce the collection period
D. Increase the dividend payout ratio
E. None of the options are correct.
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