Ch. 4 AssignmentWendy Parwanap. 1121) The pro forma statement and cash budget allows the company to be able to determine its future amount of assets and the amount of funds that will be required. Also Banks and lenders will use these statements as a guide in credit decisions. 5) Because with rapid growth in sales and profits is often affiliated with rapid growth of asset commitment which means that you would need more labor, materials, supplies to be able to keep up with sales and it can cause you to borrow more money and create imbalanced cash flow. More going out than coming in. 6) Level production in a cyclical industry would have the benefit to allow the maintenance of the work
This is the end of the preview.
access the rest of the document.