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Forecast assumptions for the following four examples 1-Cash will represent the same percent of sales as at the end of 1990. 2-The Accounts Receivable (Days)

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Forecast assumptions for the following four examples

1-Cash will represent the same percent of sales as at the end of 1990.

2-The Accounts Receivable (Days) ratio will remain the same as in 1990.

3-The Inventory Turnover vs. COGS (x) ratio will remain the same as in 1990.

4-For net fixed assets use the formula:

Beginning Net Fixed Assets

- Sales of Fixed Assets

+ Purchases of Fixed Assets

- Depreciation Expense for the Year

= Ending Net Fixed Assets

There are no sales/purchases of fixed assets in the remaining months of 1991.

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