Question: Multiple Choice When using the percent-of-sales method in forecasting the funds needed, which of the following is not true? Required new funds increase as assets

Multiple Choice

When using the percent-of-sales method in forecasting the funds needed, which of the following is not true?

  • Required new funds increase as assets increase.
  • Required new funds decrease as profit margin increases.
  • As the tax rate increases, the required new funds increase.
  • Required new funds increase as sales decrease.

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