3 . The maximum rate at which a firm can grow while maintaining a constant debt-equity ratio is best defined by its : 4 . Financial planning , when properly executed : 5 . Projected future financial statements are called : 6 . Which account is least apt to vary directly with sales ? 7 . Which one of the following depicts a correct relationship ? 8 . One of the primary weaknesses of many financial planning models is that they : 9 . In the financial planning model , the external financing needed ( EFN ) as shown on a pro forma balance sheet is equal to the changes in assets : 10 . The external funds needed ( EFN ) equation projects the addition to retained earnings as : 11 . Marcie ' s Mercantile wants to maintain its current dividend policy , which is a payout ratio of 35 percent . The firm does not want to increase its equity financing but is willing to maintain its current debt-equity ratio . Given these requirements , the maximum rate at which Marcie ' s can grow is equal to : 12 . The sustainable growth rate will be equivalent to the internal growth rate when , and only when ,: 13 . The minimum level of inventory that a firm wants to keep on hand at all times is referred to as : 14 . The operating cycle can be decreased by : 15 . The cash cycle is defined as the time between : 16 . Selling goods and services on credit is : 17 . The three components of credit policy are : 18 . Given a fixed level of sales and a constant profit margin , an increase in the accounts payable period can result from : 19 . On September 1 , a firm grants credit with terms of 2 / 10 net 30 . The creditor : 20 . The credit period begins on the : 21 . When credit is granted to another firm this gives rise to a ( n ): 22 . Since the credit decision usually includes riskier customers , the decision should adjust for this by : 23 . Jordan and Sons has an inventory period of 48.6 days , an accounts payable period of 36.2 days , and an accounts receivable period of 29.3 days . Management is considering offering a 5 percent discount if its credit customers pay for their purchases within 10 days . This discount is expected to reduce the receivables period by 17 days . If the discount is offered , the operating cycle will decrease from ___ days to ___ days . 24 . Brown ’ s Market currently has an operating cycle of 76.8 days . It is planning some operational changes that are expected to decrease the