All else equal, which of the following is the most likely to occur if actual sales are much less than forecasted sales?
A) The company will be in a better position to pay down most of its debt.
B) The firm’s actual investment in inventory will be unchanged from the amount forecasted.
C) Accounts receivable will rise significantly above the forecast.
D) The company might face a cash flow crunch.
Darshita Changed status to publish August 7, 2020
Answer:
D) The company might face a cash flow crunch.
Darshita Changed status to publish August 7, 2020
