Question
Dave has been suggested to assume his firm is operating at full capacity and its net fixed assets can be added by any amount. Thus,
Dave has been suggested to assume his firm is operating at full capacity and its net fixed assets can be added by any amount. Thus, he makes its ____________________ in his construction of the pro forma balance sheet of the firm.
Multiple Choice
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net fixed assets vary proportionally with sales
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net fixed assets vary only if the firm is producing at less than full capacity
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net fixed assets vary only if the firm maintains a fixed debt-equity ratio
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net fixed assets remain fixed
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net fixed assets vary only if the firm is currently producing at full capacity
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