1. Which of the following statements regarding financial forecasting is incorrect?
A. Financial forecasting is important since the firm’s future funding, investments, and other important financial decisions depend on reliable financial projection.
B. The Percentage-of-Sales method is a widely used, relatively simple method for financial forecasting based on certain assumptions.
C. Projected financial statements are called pro-ante financial statements.
D. Accurate forecasting requires projecting every item in the balance sheet and income statement particularly when the sales relationships tend to fluctuate considerably.
2. If you earn 10% per year on your bank account, how long will it take an account with $100 to double to $200? (Do not round intermediate calculations. Round your answer to 2 decimal places.)