Each of the following is used to forecast the amount of additional financing (i.e., cash) a company will need in some future period EXCEPT:
A) percentage of sales forecasting method
B) pro forma statement of cash flows
C) after-tax cash flow
D) None of these are correct

Question

Quizplus · Accepted Answer

The after-tax cash flow is a measure of the cash generated by a company after accounting for taxes, but it is not specifically used to forecast additional financing needs. The percentage of sales forecasting method and pro forma statement of cash flows are tools used for forecasting financial needs.

Each of the Following Is Used to Forecast the Amount