Discussion post and two responses

    

Financial Planning

The percent of sales model uses historical information to develop certain ratios such as sales to inventory or finished products, sales to debtors/receivables, and sales to cash.  Sales are then forecasted based on the ratios.  The percent of sales model is a financial planning model that assumes that most income statement and balance sheet accounts vary proportionally with sales.   This model has a weakness related to working capital.  What is this weakness and how does it affect financial planning?

Post

Must 250+ words, APA format, intext citations, must have 2-3 legitimate verifiable sources.  Due by June 2, 2019 @ 10:00 AM EST 19 hours. No later.

  Responses

Must 150+ words, APA format, intext citations, must have 2-3 legitimate verifiable sources.  Due by June 2, 2019 @ 10:00 AM EST 19 hours. No later.