Financial forecasting models based on the % of sales method produce an additional (external) funds needed amount.

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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.

Related Book For answer-question

Financial Reporting Financial Statement Analysis and Valuation a strategic perspective

ISBN: 978-1337614689

9th edition

Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

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Posted Date: Oct 05, 2023 04:39 AM

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Financial forecasting models based on the % of sales method produce an additional (external) funds needed amount.

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Financial Reporting Financial Statement Analysis and Valuation a strategic perspective

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