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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 companies would most likely not be able to increase prices in the near future?
   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 maintain its current production processes.
   D.) A firm operating in an industry that is transitioning from the introduction phase to the high growth phase of its life cycle.
2. 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?
3. 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?
4. All of the following statements are true regarding ratios and forecasts except:
   A.) Ratios cannot confirm whether forecast assumptions will turn out to be correct.
   B.) Ratios can tell whether future sales growth was accurately captured.
   C.) Ratios cannot tell whether assumptions about future cash flows are realistic.
   D.) Ratios can tell whether growth rates for sales are consistent with past sales growth performance.
5. if a firm competes in a capital-intensive industry with excess capacity, all of the following are true EXCEPT:
   A.) price increases will be less likely.
   B.) price increases will be more likely.
   C.) companies in competitive industries face high exit barriers.
   D.) companies in competitive industries may experience future price decreases.
6. To ensure that the financial statements balance, it is important that the change in the cash balance on the balance sheet each year agrees with what?
7. Financial Statement forecasts are important analysis tools because forecasts of ____ play a central role in valuation and many other financial decision contexts
8. it may be difficult to forecast sales for firms with ____ patterns because of their historical growth rates reflect wide variations in both direction and amount from year to year
9. what is the formula for forecasting inventory as a standalone item?
10. how do managers handle risks/incentives?
11. how do accountants handle risks/incentives
12. how do analysts handle risks/incentives