Which of the following statements is FALSE?
A)If a company anticipates an ongoing surplus of cash,it may choose to increase its dividend payout.
B)Seasonal sales can create large short-term cash flow deficits and surpluses.
C)The first step in short-term financial planning is to forecast the company's future net working capital.
D)Deficits resulting from investments in long-term projects are often financed using long-term sources of capital,such as equity or long-term bonds.

Question

Quizplus · Accepted Answer

The first step in short-term financial planning is to forecast the company's future cash inflows and outflows, not net working capital. Net working capital is an important component of cash flow analysis, but it is not the first step in short-term financial planning.

Which of the Following Statements Is FALSE