Question: When using the percent-of-sales method in forecasting the funds needed, which of the following is not true? 1) Outside funds needed increase as sales decrease.

 When using the percent-of-sales method in forecasting the funds needed, which

When using the percent-of-sales method in forecasting the funds needed, which of the following is not true? 1) Outside funds needed increase as sales decrease. 2) Outside funds needed decrease as profit margin increases. 3) Outside funds needed increase as assets increase. 4) As the tax rate increases, the outside funds needed increase. 5) All of the statements listed above are true

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