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Percent-of-sales forecasting method

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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 liabilities 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: EM131050325

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