What are two major projected financial statements developed during financial planning? Select one: a. forecast balance sheet and forecast statement of cash flows b. prototype retained earnings statement and prototype balance sheet c. pro forma balance sheet and pro forma income statement d. predicted statement of cash flows and predicted income statement As a financial manager, Leonard wants to know when his firm will need to arrange for short-term financing and when the firm is likely to have surplus cash available to pay off loans or to invest in short-term liquid assets. These concerns suggest that Leonard would want to develop which of the following? Select one: a. sales forecast b. cash budget c. pro forma income statement d. projected balance sheet Cindy started a small business two years ago. The business is just now seeing some success, and she has a few thousand dollars more in her bank account than is currently needed to pay her bills. However, because of the uncertainty of cash flows in her new business, she is concerned that she may need access to these funds on fairly short notice in the future. Given this situation, what should Cindy do? Select one: a. use her excess cash to buy intangible assets b. invest the funds in common stocks c. put some of her excess cash into money market mutual funds d. keep all of these funds in her chequing account Which of the following tells us that a dollar received today is worth more than a dollar received in the future? Select one: a. accounting equation b. time value of money c. empirical return principle d. first rule of finance