This document contains sample questions and problems related to financial management topics like forecasting, financial planning and budgeting, and working capital management. Specifically:
1) It provides multiple choice questions about forecasting methods, sales forecasting, and incremental budgeting.
2) It presents a word problem about overhead cost forecasting for a chicken manufacturing company.
3) It provides a budgeting problem about projected merchandise purchases for a merchandising company over three months.
4) It gives a working capital problem about determining the optimal order size and average inventory for shells used in a company's product.
The document appears to be from a financial management course, containing teaching materials and practice problems for students.
This document contains sample questions and problems related to financial management topics like forecasting, financial planning and budgeting, and working capital management. Specifically:
1) It provides multiple choice questions about forecasting methods, sales forecasting, and incremental budgeting.
2) It presents a word problem about overhead cost forecasting for a chicken manufacturing company.
3) It provides a budgeting problem about projected merchandise purchases for a merchandising company over three months.
4) It gives a working capital problem about determining the optimal order size and average inventory for shells used in a company's product.
The document appears to be from a financial management course, containing teaching materials and practice problems for students.
This document contains sample questions and problems related to financial management topics like forecasting, financial planning and budgeting, and working capital management. Specifically:
1) It provides multiple choice questions about forecasting methods, sales forecasting, and incremental budgeting.
2) It presents a word problem about overhead cost forecasting for a chicken manufacturing company.
3) It provides a budgeting problem about projected merchandise purchases for a merchandising company over three months.
4) It gives a working capital problem about determining the optimal order size and average inventory for shells used in a company's product.
The document appears to be from a financial management course, containing teaching materials and practice problems for students.
This document contains sample questions and problems related to financial management topics like forecasting, financial planning and budgeting, and working capital management. Specifically:
1) It provides multiple choice questions about forecasting methods, sales forecasting, and incremental budgeting.
2) It presents a word problem about overhead cost forecasting for a chicken manufacturing company.
3) It provides a budgeting problem about projected merchandise purchases for a merchandising company over three months.
4) It gives a working capital problem about determining the optimal order size and average inventory for shells used in a company's product.
The document appears to be from a financial management course, containing teaching materials and practice problems for students.
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UNIVERSITY OF PANGASINAN
PHINMA EDUCATION NETWORK
Financial Management (FIN 004)
Name: ______________________________ Course and Block: _______________________
Forecasting
____________________________ 1. Similar to expert opinion, this is also done by a group of experts. The difference is that members are asked individually through a questionnaire about their forecast of future events. ____________________________ 2. Under time series forecasting, this is a data pattern that repeats itself after a period of days, weeks, months or quarters. ____________________________ 3. This is considered as the benchmark model. The simplest way to forecast is to assume that the demand in the next period will be equal to the demand in the most recent period. ____________________________ 4. This method uses the weighted moving average technique where more weight is given to the recent data. ____________________________ 5. This model incorporates the variables or factors that might influence the quantity being forecasted. Example is linear regression.
Financial Planning and Budgeting
ANSWERS QUESTIONS CHOICES
1.The budget starts with the previous year’s budget and a.Pro-forma balance sheet then an amount is added or subtracted according to the anticipated needs. 2.It is prepared to determine the financial needs of the b.Budgeting company. 3.This is a budget that specifies the number of units that c.Sales Forecast the company desires to have in their balance sheet at the end of the period. 4.It serves as the mother of all the budgets that every d.Ending inventory budget subsequent operating and financial budget will rely on. 5.This is the process of transforming the planned courses e.Cash budget of action into quantitative terms. f.Incremental-based approach
Working Capital and Cash Management
Enumerate the (5) Possible Placements for Excess Cash
PROBLEM SOLVING
Forecasting
James Reid manufactures Jollibee Chicken. Based on past experience, Issa Pressman, the finance manager, found out that the firm’s total overhead cost can be represented by the following cost model: Total overhead cost = P35,500 + 1.25x, where x = number of cooking hours. Last year, the firm incurred 120,000 cooking hours.
Compute for the following:
a. Total overhead cost incurred last year __________________________________
b. Total variable overhead cost incurred last year ___________________________ c. Total overhead cost per cooking hour last year ___________________________ d. Fixed overhead cost per cooking hour last year ___________________________ e. If James Reid incurs 150,000 cooking hours this year, what will be the overhead cost per cooking hour? _____________________________________
Financial Planning and Budgeting
The sales manager of Merling Merchandising has budgeted the following sales for the 2 nd quarter of 2020: April P123,500 May 156,000 June 208,000 Other budgeted estimates are: All merchandises are to sell at its invoice cost plus 30% mark-up. Beginning inventories of each month are budgeted at 40% of that particular month’s projected cost of goods sold. REQUIRED: Determine the following: 1. Projected merchandise purchases for the month of April. ______________________________ 2. Projected merchandise purchases for the month of May. _______________________________
Working Capital and Cash Management
Erin Company requires 40,000 shells for its signature product, “Pearly Shirl.” The shells will be used evenly throughout the year. The cost to place one order is P20 while the cost to carry the shells in inventory for one year is P0.40. REQUIJRED: A) What is the optimal transaction size? ________________________________ B) What is the average inventory in units? ______________________________ PREPARED BY: Rochelle Joyce C. Cosme
1 TIMOTHY 4:12 Don’t let anyone think less of you because you are young. Be an example to all believers in what you say, in the way you live, in your love, your faith and your purity.
