The percent-of-sales method is a commonly used method for estimating a firm's financing needs.

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The percent-of-sales method is indeed a commonly used method for estimating a firm's financing needs. This method involves projecting future sales, determining the expected percentage of each dollar of sales that will be used for various expenses (such as cost of goods sold and operating expenses), and then calculating the expected financing gap between these expenses and the firm's expected internal funds (such as retained earnings). This method can be useful for helping a firm to plan its future funding requirements and to identify potential sources of external financing.

The Percent-Of-Sales Method Is a Commonly Used Method for Estimating