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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)
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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