[Answer] When using the percent-of-sales method in forecasting the funds needed what is not true?

Answer: Required new funds increase as the dividend payout ratio decreases.

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When using the percent-of-sales method in forecasting the funds needed what is not true? When using the percent-of-sales method in forecasting funds needed which of the following is not true Required new funds increase as the dividend payout decreases BHS Inc . determines that sales will rise from $400 000 to $550 000 next year. In the percent-of-sales method. →as the dividend payout ratio goes up the required new funds also rise. as the dividend payout ratio rises required new funds decline . the dividend payout ratio does not affect new funds. -None of these. POF MASTER 4-6. A. as the dividend payout ratio goes up the required new funds also rises. B. as the dividend payout ratio rises the required new funds declines. C. the dividend payout ratio does not affect new funds. None of the options. a When using the percent-of-sales method in forecasting the funds needed … In forecasting a firm's cash needs for some future period. the percent-of-sales method is a "broad brush" approach. Cash budgets are more exact than percent-of-sales method . A cash budget approach can deal effectively with both level and seasonal production schedules. When using the percent- of -sales method in forecasting the funds needed which of the following is not true ? A. As the dividend payout ratio increases the required new funds also increase. B. Required new funds increase as the dividend payout decreases. C. Required new funds decrease as profit margin increases. D. Sun Sep 01 2013 · When using the percent-of-sales method in forecasting funds needed which of ...

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