Additional financing needed to support an increase in sales

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Reference no: EM132041929

1. To decrease the additional financing needed to support an increase in sales, management can:

a. decrease notes payable

b. retire common stock

c. increase the dividend payout

d. cut dividends

2. In using the percentage of sales forecasting method the assumption is that

a. there is a direct relationship between long-term debt and sales

b. inventories will increase proportionately with sales

c. there is a direct relationship between notes payable and sales

d. retained earnings will increase proportionately with sales

Reference no: EM132041929

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