2. The financial leverage multiplier is the ratio of ________.

A.

current assets to current liabilities

B.

total assets to total debt

C.

total assets to common stockholders' equity

D.

current assets to common stockholders' equity

3. The key input to the shortminusterm financial planning process is ________.

A.

the pro forma balance sheet

B.

the sales forecast

C.

the audit report

D.

the pro forma income statement

The financial planning process begins with ________ financial plans that in turn guide the formation of ________ plans and budgets.

A.

shortminusterm; shortminusterm

B.

longminusterm; shortminusterm

C.

shortminusterm; longminusterm

D.

longminusterm; longminusterm

Cash flows directly related to production and sale of a firm's products and services are called ________.

A.

cash flow from equity activities

B.

cash flow from financing activities

C.

cash flow from operating activities

D.

cash flow from investment activities

The key outputs of the shortminusterm financial planning process are the ________.

A.

sales forecast and schedule of changes in working capital

B.

income statement, balance sheet, and source and use statement

C.

cash budget, pro forma income statement, and pro forma balance sheet

D.

sales forecast and capital assets journal