A Firm Has Targeted a 20% Growth in Sales This

question 63

Multiple Choice

A firm has targeted a 20% growth in sales this year. Last year's cash as a percent of sales was 10%, accounts receivable 30%, and inventory 25%. What percentage growth in current liabilities is required to support the growth in sales under the percent-of-sales forecasting method?

• A) 32%
• B) 13%
• C) 8%
• D) Not enough information to tell

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