When Constructing a Pro Forma Statement, Net Working Capital Generally

question 313

Multiple Choice

When constructing a pro forma statement, net working capital generally varies:

• A) Directly with sales.
• B) With the level of capacity utilization.
• C) Directly with the growth rate of fixed assets.
• D) Based upon the financial leverage employed.
• E) As necessary to get the balance sheet to balance.

---

Definitions:

Myofibrils

Tiny threadlike structures in the cytoplasm of striated and cardiac muscle that are composed of myosin filaments and actin filaments; these filaments are responsible for muscle contraction; see myosin filaments and actin filaments.

Contract

A legally binding agreement between two or more parties that outlines obligations and rights of each party.

Cardiac Muscle Fibers

Specialized muscle cells in the heart characterized by their ability to contract rhythmically and continuously without fatigue to pump blood throughout the body.

Skeletal Muscle Fibers

Cellular components of skeletal muscles that contract to produce voluntary movements of the body.