(Percent of sales forecasting) Which of the following accounts would most likely vary directly with the level of a firm's sales? Discuss each briefly. Yes No Yes No Notes payable Plant and equipment Inventories Cash Marketable securities Accounts payable Is cash likely to vary directly with the level of a firm's sales? (Select the best choice below.) O A. No, cash receipts follow sales with a lag related to the payment habits of the firm's customers and the firm's policy regarding payments on its accounts payable O B. Yes, cash receipts vary directly with sales and have a relation to the firm's customers payment habits or the firm's policy regarding payments on its accounts payable. Are marketable securities likely to vary directly with the level of a firm's sales? (Select the best choice below.) O A. No, marketable securities are not related to sales. O B. Yes, the value of marketable securities varies directly with sales. Is accounts payable likely to vary directly with the level of a firm's sales? (Select the best choice below.) O A. Yes, accounts payable will vary directly with sales. O B. No, accounts payable will not vary directly with sales. Is notes payable likely to vary directly with the level of a firm's sales? (Select the best choice below.) O A. Yes, notes payable is likely to vary directly with sales. O B. No, notes payable will only follow sales if the firms uses a line of credit to finance its working capital needs. Is plant and equipment likely to vary directly with the level of a firm's sales? (Select the best choice below.) O A. Yes, plant and equipment is likely to vary directly with the level of sales. O B. No, plant and equipment is not likely to vary directly with the level of sales. Are inventories likely to vary directly with the level of a firm's sales? (Select the best choice below.) O A. Yes, inventories are likely to vary directly with the level of sales. O B. No, inventories are not likely to vary directly with the level of sales