Posted: February 15th, 2016

1. Describe, in general, the steps involved in using the percent of sales forecasting method to generate pro forma financial statements.

1. Describe, in general, the steps involved in using the percent of sales forecasting method to generate pro forma financial statements.

2. Explain why return on invested capital may be a better performance ratio than return on assets when comparing two companies.

3. List the advantages of using short-term financing and the advantages of using long-term financing for a firm’s working capital.