Question $4$ Partially correct Mark $2\mathrm{.}25$ out of $4\mathrm{.}00$

Adjust the Cash Balance

We obtain the following $2020$ forecasts of selected financial statement line items for Journey Company.

Note: Complete the entire question in Excel using the following template: Excel Template. Excel calculations should be unrounded. Format each answer

to two decimal places. Then enter the answers into the provided spaces below with two decimal places.

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

$7\mathrm{.}22\%$

Using the answer above, compute what should be the normal cash balance for FY$2020.$

Normal rash halance for FY$$n$$n

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?

Decrease capital expenditures

d$.$ Complete the following statement of cash flows assuming long$-$term debt is used to adjust the forecasted cash balance.

e$.$ Complete the following statement of cash flows assuming marketable securities are used to adjust the forecasted cash balance.

Partially correct

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