The first step involved in predicting financing needs is: - 3756

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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.

Financing needs are the amount a company must borrow in order not to be short of cash. To determine financing needed the company must first evaluate its inflows and outflows for adequacy.

Solution Description

The first step involved in predicting financing needs is: