The first step involved in predicting financing needs is
A) projecting the firm's sales revenues and expenses over the planning period.
B) estimating the levels of investment in current and fixed assets that are necessary to support the projected sales.
C) determining the firm's financing needs throughout the planning period.
D) none of the above.

Question

Quizplus · Accepted Answer

The first step in predicting financing needs is to project the firm's sales revenues and expenses over the planning period. This will provide a basis for estimating the levels of investment in current and fixed assets that are necessary to support the projected sales, as well as to determine the firm's financing needs throughout the planning period. Therefore, option A is the correct answer.

The First Step Involved in Predicting Financing Needs Is