Question: 1. Hotel Gudauri is operating in Georgia, South Caucasus, and is located in the Ski and Skate resort area. It became quite popular in recent years. Do you think that seasonal variations may affect forecasting of the hotel's financial projections? How? Explain.
2. Discuss the shortcomings of the percent of sales method of financial forecasting.
3. What would be the probable effect on a firm's cash position of the following events?
a. Delay in collecting of accounts receivables
b. More strict policy in credit sales terms
c. More liberal policy from suppliers regarding purchases in credit
d. Holding larger inventories.