Adjust the Cash BalanceWe obtain the following 2020 forecasts of selected financial statement line items for Journey Company.2019Actual 2020 Est.$535,667 $559,77250,725 46,945261,998 233,17838,688 38,68843,618(11,270)(41,323)$ millionsNet SalesMarketable securitiesLong-term debtTreasury stock (deducted from equity)Cash generated by operationsCash used for investingCash used for financingTotal net change in cashCash at beginning of periodCash at end of periodNote: Complete the entire question in Excel using the following template: Excel Template. Format each answer to two decimal places. Then enter the answers into the provided spaces below with two decimal places.a. Does forecasted cash deviate from the normal level for this company?Calculate the company's normal cash level as a percentage of sales.Normal cash as a % of sales0%$Using the answer above, compute what should be the normal cash balance for FY2020.Normal cash balance for FY20200b. Is the deviation in part a large enough to require adjustment? Explain.(8,975)38,663$29,688c. Identify three ways to adjust the forecasted cash balance.Which option would least likely be used to adjust the cash balance?Sell marketable securitiesDecrease capital expendituresIncrease long-term debtSell treasury stockCash used for financingnt of cash flows assuming long-term debt is used to adjust the forecasted cash balance.000 d. Complete the following statement of cash flows assuming long-term debt is used to adjust the forecasted cash balance.Statement of Cash FlowsCash generated by operations $Cash used for investingCash used for financingTotal change in cashCash at beginning of periodCash at end of period$0$OO000O O00e. Complete the following statement of cash flows assuming marketable securities are used to adjust the forecasted cash balance.Statement of Cash FlowsCash generated by operations $Cash used for investingCash used for financingTotal change in cashCash at beginning of periodCash at end of period000000Please answer all parts of the question.

"Since you have asked a question with sub-parts more than three, as per guidelines, the first three…

We obtain the following 2020 forecasts of selected financial statement line items for Journey Company. 2019 Actual 2020 Est. $535,667 $559,772 50,725 46,945 261,998 233,178 38,688 38,688 43,618 (11,270) (41,323) $ millions Net Sales Marketable securities Long-term debt Treasury stock (deducted from equity) Cash generated by operations Cash used for investing Cash used for financing Total net change in cash Cash at beginning of period Cash at end of period (8,975) 38,663 $29,688

We obtain the following 2020 forecasts of selected financial statement line items for Journey Company. 2019 Actual 2020 Est. $535,667 $559,772 50,725 46,945 261,998 233,178 38,688 38,688 43,618 (11,270) (41,323) $ millions Net Sales Marketable securities Long-term debt Treasury stock (deducted from equity) Cash generated by operations Cash used for investing Cash used for financing Total net change in cash Cash at beginning of period Cash at end of period (8,975) 38,663 $29,688

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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