We obtain the following 2018 forecasts of selected financial statement line items for Journey Company. $ millions in 2017 Actual 2018 Est. Net Sales $708,554 $740,439 Marketable securities 67,096 62,096 Long-term debt 346,558 308,437 Treasury stock (deducted from equity) 51,174 51,174 Cash generated by operations 57,696 Cash used for investing (14,908) Cash used for financing (54,660) Total net change in cash (11,872) Cash at beginning of period 51,141 Cash at end of period $39,269
Does forecasted cash deviate from the normal level for this company?

The forecasted cash is lower than the normal level (5.3% vs 7.22% of total sales). This results in a -26.59% change in the normal cash level.

Explanation:

                                                              2017 Actual    2018 Est. Net

Sales                                                         $708,554       $740,439

Marketable securities                                  67,096           62,096

Long-term debt                                          346,558         308,437

Treasury stock (deducted from equity)        51,174             51,174

Cash generated by operations                                          57,696

Cash used for investing                                                     (14,908)

Cash used for financing                                                    (54,660)

Total net change in cash                                                    (11,872)

Cash at beginning of period                                                 51,141

Cash at end of period                                                       $39,269

the normal cash level for this company = $51,141 (ending cash 2017 or beginning cash 2018) / $708,554 (total sales 2017) = 7.22%

the cash level for 2018 =  $39,269 (budgeted cash at end of 2018) / $740,439 (budgeted total sales 2018) = 5.3%

so the forecasted cash is lower than the normal level (5.3% vs 7.22% of total sales)

the percent change = (5.3% - 7.22%) / 7.22% = -26.59%

answer is i don't know