Growth in sales under percent-of-sales forecasting method

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Reference no: EM13972592

A firm has targeted a 40% growth in sales this year. Last year's cash as a percent of sales was 15%, accounts receivable 30%, and inventory 35%. What percentage growth in current assets is required to support the growth in sales under the percent-of-sales forecasting method?

A. 32%

B. 26%

C. 18%

D. Not enough information to tell

Reference no: EM13972592

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