A firm anticipates a 30% growth in sales this coming year. Last year the firm had...
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A firm anticipates a 30% growth in sales this coming year. Last year the firm had the following figures expressed as a percentage of sales: cash at 10%, accounts receivable at 25%, and inventory at 20%. Using the percentage-of-sales forecasting method, what percentage growth in current liabilities is needed to sustain the growth in sales? A firm anticipates a 30% growth in sales this coming year. Last year the firm had the following figures expressed as a percentage of sales: cash at 10%, accounts receivable at 25%, and inventory at 20%. Using the percentage-of-sales forecasting method, what percentage growth in current liabilities is needed to sustain the growth in sales?
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Related Book For
Fundamentals of Financial Management
ISBN: 978-1285867977
14th edition
Authors: Eugene F. Brigham, Joel F. Houston
Posted Date:
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