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Which one is true? Percentage of Sales Model which sales forecasts are the driving variable and most other variables are assumed fixed. When a liability

Which one is true?

Percentage of Sales Model which sales forecasts are the driving variable and most other variables are assumed fixed.

When a liability goes up, it has a negative impact on cash flow.

Pro Formas are projected or forecasted Balance sheets and Income statements.

Balancing Item is a variable that is calculated on the last step of forcasting and is there to maintain the consistency of a financial plan.

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