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Question 15 Partially correct Mark 3.75 out of 10.00 Flag question Adjust the Cash Balance We obtain the following 2020 forecasts of selected financial
Question 15 Partially correct Mark 3.75 out of 10.00 Flag question Adjust the Cash Balance We obtain the following 2020 forecasts of selected financial statement line items for Journey Company. Net Sales $ millions Marketable securities Long-term debt Treasury stock (deducted from equity) Cash generated by operations Cash used for investing 2019 Actual 2020 Est. $535.667 $559.772 50.725 46,945 261,998 233,178 38.688 38,688 43.618 (11.270) (41,323) (8,975) 38.663 1 Cash used for financing Total net change in cash Cash at beginning of period Cash at end of period $29.688 Note: Complete the entire question in Excel using the following template: Excel Template. Format each answer to two decima a. Does forecasted cash deviate from the normal level for this company? Calculate the company's normal cash level as a percentage of sales. Normal cash as a % of sales 7.22% Using the answer above, compute what should be the normal cash balance for FY2020, Normal cash balance for FY2020 40.415.55 x b. Is the deviation in part a large enough to require adjustment? Explain. Yes. The deviation is large enough to require an adjustment c identify three ways to adjust the forecasted cash balance Which option would least likely be used to adjust the cash balance? Decresse capital expenditures 63F
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