Question: Financial forecasting models based on the % of sales method produce an additional (external) funds needed amount. If this amount is negative , you would

Financial forecasting models based on the % of sales method produce an additional (external) funds needed amount. If this amount is negative, you would most likely assume:

A. The company is operating exactly at capacity.

B. The company will generate enough internal funds to satisfy the growth target used in the model

C. The company will not generate enough internal funds to satisfy the growth target used in the model

D. The company needs external funds to finance the sales growth target used in the model.

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