1.When sales forecasts are used as the factors in a business financial plan, which of the following apply?

a.External financing must be determined by calculating any shortfall which is defined as the difference between cash flow from operations and the sum of net working capital, capital budgeting or capital expenditure (CAPEX) decisions, and dividend payments.

b.Internal growth rate should be calculated by taking the ratio of reinvested earnings to gross assets.

c.Develop a pro-forma balance sheet which helps identify changes to capital structure that anticipates the need for external funding such as a debt raise or the issuance of new common shares.

d.Only a and c.

e.A, b, and c.

f.Only b and c.