Adjust the Cash Balance We obtain the following 2018 forecasts of selected financial statement line items for Journey Co

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Adjust the Cash BalanceWe obtain the following 2018 forecasts of selected financialstatement line items for Journey Company.
a. Does forecasted cash deviate from the normal level for thiscompany?Calculate the company's normal cash level as a percentage ofsales.Round answer to one decimal place.Answer
%Using the rounded answer above, compute what should be the normalcash balance for FY2018.Round answer to the nearest million.$Answer
millionb. Is the deviation in part a large enough to require adjustment?Explain.
No. the deviation is not large enough to require anadjustment.
Yes, the deviation is large enough to require an adjustment.
Mark 1.00 out of 1.00
c. Identify three ways to adjust the forecasted cash balance.Which option would least likely be used to adjust the cashbalance?
Sell marketable securities
Decrease capital expenditures
Increase long-term debt
Sell treasury stock
Mark 1.00 out of 1.00
d. Complete the following statement of cash flows assuminglong-term debt is used to adjust the forecasted cash balance.
Use negative signs with answers, when appropriate.
e. Complete the following statement of cash flows assumingmarketable securities are used to adjust the forecasted cashbalance.
Use negative signs with answers, when appropriate.