16 ) In the development of the pro forma financial statements, the last step in the process is the development of the

A) cash budget.

B) pro forma balance sheet.

C) pro forma income statement.

D) capital budget.

17 ) In the percent-of-sales method, an increase in dividends

A) will increase required new funds.

B) will decrease required new funds.

C) has no effect on required new funds.

D) More information is needed.

18 ) Net cash flow is equal to

A) income after taxes minus depreciation.

B) income after taxes minus dividends.

C) cash receipts minus cash payments.

D) cash receipts minus cash payments minus depreciation.