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Projecting sales price changes depends on factors specific to the firm and its industry that might affect demand and price elasticity

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1. Projecting sales price changes depends on factors specific to the firm and its industry that might affect demand and price elasticity. Which of the following types of companies would most likely be able to increase prices?
   A.) A firm in a capital intensive industry that is expected to operate near capacity for the near future.
   B.) A firm in a capital intensive industry in which excess capacity exists.
   C.) A firm operating in an industry that is expected to experience technological improvements in its production process.
   D.) A firm operating in an industry that is transitioning from the high growth to the maturity phase of its life cycle.
2. An analyst using the inventory turnover ratio to calculate future levels of inventory may face the problem that the methods do what?
3. Sparky's sells auto parts. Provided below is selected financial information from the company's 2012 annual report (amounts in thousands of dollars): Net sales 2012 = $125,410 2011 = $106,380 Cost of Goods Sold 2012 = 104,090 2011 = 89,359 Gross Profit 2012 = $21,320 2011 = $17,021 Inventory 2012 = $31,353 2011 = $30,850 Sparky's forecasts that sales will grow by 25% in 2013 and that its cost of goods sold to sales ratio will be the same in 2013 as it was in 2012. If these assumptions prove correct and Sparky's inventory turnover ratio for 2013 is 4.5, what will be the level of inventory at the end of 2013?
4. Card Sharks, Inc. sells baseball cards and other memorabilia. The company tries to maintain a cash balance equivalent to approximately 30 days of sales. Sales in 2011 amounted to $352,412 and the company expects growth in 2012 of 33% and in 2013 of 40%. What is the company's 2012 projected year-end cash balance?
5. Z Corp. reflects the following data: Units sold 2011 = 900,000 2012 = 1,100,000 Average price per unit 2011 = $4.50 2012 = $4.80 How much of the change in 2012 sales is due to volume changes and how much is due to price changes?
6. Projecting sales price changes depends on factors specific to the firm and its industry that might affect demand and price elasticity. Which of the following companies would most likely not be able to increase prices in the near future?
7. if a company has very low operating leverage (i.e. a low proportion of fixed costs in the cost structure) and no changes are expected in operations using what?
8. Financial statement forecasts rely on additivity within financial statements and articulation across financial statements. Given this information sales growth forecasts will most likely affect growth in what?
9. The objective of forecasting is to develop what?
10. Card Sharks, Inc. sells baseball cards and other memorabilia. The company tries to maintain a cash balance equivalent to approximately 30 days of sales. Sales in 2011 amounted to $352,412 and the company expects growth in 2012 of 33% and in 2013 of 40%. Given the information provided about Card Sharks, what is the company's 2013 projected cash balance?