Which One Of The Following Is Correct In Relation To Pro Forma Statements?

(Correct Answer Below)

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Which One Of The Following Is Correct In Relation To Pro Forma Statements?

a. Fixed assets must increase if sales are projected to increase b. The addition to retained earnings is equal to net income plus dividends paid c. Net working capital is affected only when a firm's sales are expected to exceed the firm's current production capacity d. Inventory changes are directly proportional to sales changes e. Long-term debt varies directly with sales when a firm is currently operating at maximum capacity
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d. inventory changes are directly proportional to sales changes

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