5. Which of the following statements is correct regarding balance sheet forecasting with an external model? A projected balance sheet will balance, with the exception of minor rounding, when a company uses a percentage of sales methodology to project all a balance sheet accounts. A projected balance sheet will balance, with the exception of minor rounding, when a company uses financial ratios to project operating assets and b operating liabilities and keeps its non-operating accounts unchanged in all years. A projected balance sheet will balance, with the exception of minor rounding, when a company uses a percentage of sales methodology to project C. operating assets and operating liabilities and keeps its non-operating accounts unchanged in all years. a, b & c are each incorrect. a, b & c are each correct. Manya Inc.'s accountant reported that the company's average collection period (days sales outstanding) increased by 3.2 days and that its accounts receivable as a percentage of total assets fell by 5.8 percentage points between 2018 and 2019. The company's sales and operating income were identical in both 2018 and 2019. Using only the information above, which of the following is a logical explanation for the increase in the average collection period and the decrease in accounts receivable as a percentage of total assets? Manya began paying cash dividends for the first time in 2019. Manya borrowed a large amount of money from its bank in 2019 Manya repurchased a large amount of its common stock in 2019 using new bank debt. a & c are each logical explanations. There is no logical explanation for this. The accountant miscalculated either the average collection period or the accounts receivable as a percentage e of total assets. Benes Corporation is a manufacturer of healthy breakfast foods. On Bania's GAAP 2019 Statement of Cash Flows, the company reported a large positive 7. cash flow from operating activities, a slightly negative cash flow from investing activities and a large negative cash flow from financing activities. Which of the following stages of development is the company most likely in? Infancy stage Expansion stage. Maturity stage ? ? Either the infancy stage or expansion stage. More information is needed to determine which of the two stages. Question cannot be answered without additional information. 8. Which of the following can be determined solely from a common sized income statement? A company's total research and development expense. A company's total marketing expense. -? A company's operating profit margin. a, b & c can each be determined. a, b & c each cannot be determined