Kaplan gb550 unit 6
Question # 00056778
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Updated on: 03/23/2015 11:09 PM Due on: 03/31/2015

Define each of the following terms:
a. Mission statement; corporate scope; statement of corporate objectives; corporate
strategies
b. Operating plan; financial plan; sales forecast
c. Spontaneous liabilities; profit margin; payout ratio
d. Additional funds needed (AFN); AFN equation; capital intensity ratio; self supporting growth rate
e. Forecasted financial statement approach
f. Excess capacity; lumpy assets; economies of scale
g. Full capacity sales; target fixed assets/sales ratio; required level of fixed assets
h. Financing feedback effects

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Solution: Kaplan gb550 unit 6