Which of the Following Statements Is Incorrect

Which of the following statements is incorrect?

A) In a retail business, one would expect inventory to vary with sales.
B) The percentage of sales method is based on the idea that many types of assets and liabilities move along with sales.
C) The percentage of sales method is the expected growth rate of a business entity considering the entity's return on equity and its earnings retention.
D) When using the percentage of sales method to forecast, one should note that cash balances and other operating accounts tend to vary along with sales.