Sophia_Finance_Milestone_1 unit 1 complete update A+ GRADED

Score 23/27 You passed this Milestone 23 questions were answered correctly. 4UquNestiIonTs we1re a—nswerMed inIcLorrEectSly.TONE 1 Preparing a cash flow forecast helps a company to avoid . net losses higher financing costs opportunity costs liquidity CONCEPT Building a Cash Budget 2 Lucas is worried about his company's short-term viability. What type of financial statement should he look at? Income statement Cash flow statement Balance sheet Statement of changes in equity CONCEPT Introducing Financial Statements 3 Consider the following information: Total current assets $42,123 Deferred income taxes $2,638 Inventories $4,873 Prepaid expenses $1,554 Other assets $6,263 Total current liabilities $38,902 What is the current ratio? 1.21 1.15 0.97 1.08 CONCEPT Liquidity Ratios 4 Consider the P/E ratios of the following companies: Company A: 5.34 Company B: 3.33 Company C: 7.90 Company D: 6.75 Which company has the lowest relative value among investors? Company B Company A Company C Company D CONCEPT Market Value Ratios 5 The purpose of a pro forma balance sheet is to . analyze the effects of a sales forecast analyze historical data compare previous accounting periods prepare for a financial audit .....................................................continued...................................................