5. Why do you think most long-term financial planning begins with sales forecasts? Put differently, why are future sales the key input?

a. Because firms need to have sales in the past to determine the past sales.

b. Put differently, a firm s future need for things like capital assets, employees, inventory, and financing are determined by its past sales level.

c. A firm s assets, employees, and, in fact, just about every aspect of its operations and financing does not directly or indirectly support sales.

d. The reason is that, ultimately, sales are the driving force behind a business.