Sterling Company is a start-up technology firm that has been experiencing super-normal growth over the past two years. Selected common-size financial information follows:
A．
B．2007 Actual % of Sales
C．2008 Forecast % of Sales
D．Sales
E．100 %
F．100%
F．Cost of goods sold
F．60%
F．55%
F．Selling and administration expenses
F．25%
F．20%
F．Depreciation expense
F．10%
F．10%
F．Net income
F．5%
F．15%
F．Non-cash operating working capital
F．20%
F．25%
F．Non-cash operating working capital = Receivables + Inventory - Payables
F．
F．
参考答案：B
解析：2008 sales are expected to be $ 30 million ( $ 20 million 2007 sales×1.5) and 2008 net income is expected to be $4.5 million ( $ 30 million 2008 sales×15% ). 2007 non-cash operating working capital was $ 4 million ( $ 20 million 2007 sales×20% ) and 2008 non-cash operating working capital is expected to be $ 7.5 million ( $ 30 million 2008 sales×25 % ). 2008 operating cash flow is expected to be $ 4 million ( $ 4.5 million 2008 net income + $ 3 million 2008 depreciation - $ 3.5 million increase in non-cash operating working capital). Forecasts for small firms, start-ups, or firms operating in volatile industries may be less reliable than a forecast for a large, well diversified, firm operating in mature industries.