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  3. Study Set
    Intermediate Financial Management Study Set 2
  4. Exam
    Exam 9: Financial Planning and Forecasting Financial Statements
  5. Question
    The Percentage of Sales Method Assumes That All Financial Ratios
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The Percentage of Sales Method Assumes That All Financial Ratios

Question 3

Question 3

True/False

The percentage of sales method assumes that all financial ratios are constant, which means, for example, that if you plotted a graph of inventories versus sales, the regression line would be linear and would have a positive Y-intercept.

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