Question: Why is current assets modeled as being a constant proportion of sales? Select all that apply. Because: Question 1 options: 1) Physically the firm's current

Why is current assets modeled as being a constant proportion of sales? Select all that apply. Because:

Question 1 options:

1)

Physically the firm's current assets increase with sales

2)

Analysis of the firm's historical data shows that current assets is directly related to sales

3)

That is how professionals recommend we model current assets so that is what we do.

4)

That is how academics model current assets so that is what we do.

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