Question: When using the percent - of - sales method in forecasting funds needed, which of the following is NOT true? Multiple Choice 0 2 -

When using the percent-of-sales method in forecasting funds needed, which of the following is NOT true?
Multiple Choice
02-45*23
As the dividend payout ratio decreases, the required new funds also decrease.
Required new funds decrease as profits margins increase.
Required new funds increase as accumulated amortization increases.
When using the percent - of - sales method in

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

Develop a pro forma income statement for 1996. You may assume that depreciation equals the 1995 amount plus one-sixth of 1996 capital spending. The relevant tax rate is 40 percent. Estimate purchases...

Q:

Estimate purchases in 1996. (Hint: Cost of goods equals purchases plus beginning inventory minus ending inventory.) Use the percent of sales method to estimate funds needed in 1996 using the 1995...

Q:

Can you help me with my project for CISCO company, I need it to graduate this semester. $100 on the table for this. Please see the attachment on. Financial Analysis Project Project summary Students...

Q:

SLM, Inc., with sales of $800, has the following balance sheet: SLM, Incorporated Balance Sheet as of 12/31/X0 Assets Accounts receivable Inventory Plant $ 200 280 Liabilities and Equity Trade...

Q:

. Problem 23-01 SLM, Inc., with sales of $900, has the following balance sheet: SLM, Incorporated Balance Sheet as of 12/31/X0 Assets Accounts receivable Inventory Plant $ 135 405 Liabilities and...

Q:

SLM, Inc., with sales of $1,200, has the following balance sheet: It earns 10 percent on sales (after taxes) and pays no dividends. Round your answers to the nearest dollar. a. Determine the balance...

Q:

Hi Erylee88, I would like to utilize your service again. Same format different questions. Please find attached document for your review. Let me know. Thank you, Sam...

Q:

Please answer the following five questions using the data in the pictures provided. please show how the answers were found. Project the 1996 income statement assuming no borrowing. Project Tipton's...

Q:

Please see the below 50 questions from FIN 101. Q1. Which of the following will most likely result in an increase in discretionary funding needed? a. The company's profit margin increases. b. The...

Q:

6.When actual sales are greater than forecasted sales: Multiple Choice inventory will increase. production schedules might have to be revised downward. accounts receivable will decrease. inventory...

Q:

In 1990, a Japanese investor paid $100 million for an office building in downtown Los Angeles. At the time, the exchange rate was 145/$. When the investor went to sell the building five years later,...

Q:

Divine just corporation (dji) is a canadian publicly traded company with a december 31 year ond information about its capital structu common shares issued and outstanding 1,100,000 debt with a face...

Q:

The breakeven sales volume in units can be determined by dividing the total of froed costs plus the desired income with a denominator. What is the denominator? Sales Conitituation margin Contribution...

Q:

Solve B. 6a2-23a +20. a +2 2a2-a-10 2a-5