When using the percent-of-sales method in forecasting funds needed, which of the following is not true?
A) As the dividend payout ratio decreases, the required new funds also increase.
B) Required new funds decrease as profits margins increase.
C) Required new funds increase as the dividend payout decreases.
D) As the tax rate increases, the required new funds increase.
Correct Answer:
Verified
Q28: In the percent-of-sales method
A) as the dividend
Q29: If Excel Inc. has projected sales of
Q35: In the percent-of-sales method, an increase in
Q36: If the actual December 31st A/R balance
Q37: Wiggles Right forecasted sales of $5,000 in
Q38: In a cash budget, the cumulative cash
Q55: GS Cookie Co. forecasts cash receipts for
Q70: In developing data for accounts receivable for
Q77: The difference between total receipts and total
Q79: The percent-of-sales method of financial forecasting
A) is
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents