The percent of sales method is a forecasting method that predict financial elements based on their relationship to
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The percent of sales method is a forecasting method that predict financial elements based on their relationship to
sales. In other words, these items increase proportionately as sales increase. This method can be applied to many, but not all, of the elements of the pro forma statements. Which of the following cannot be accurately predicted with this method?
Operating expenses
Capital investments
Advertising expenses
Accounts receivable
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