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ane Epworth, CFA, is preparing pro forma financial statements for Gavin Industries, a mature U.S…

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Jane Epworth, CFA, is preparing pro forma financial statements for Gavin Industries, a mature U.S… 1 answer below » Jane Epworth, CFA, is preparing pro forma financial statements for Gavin Industries, a mature U.S. manufacturing firm with three distinct geographic divisions in the Midwest, South and West. Epworth prepares estimates of sales for each of Gavin’s divisions using economists’ estimates of next-period GDP growth and sums the three estimates to forecast Gavin’s sales. Epworth’s approach to estimating Gavin’s sales is: A) inappropriate, because sales should be forecast on a firm-wide basis and are unlikely to be related to GDP growth B) appropriate. C) inappropriate, because sales should be View complete question » Jane Epworth, CFA, is preparing pro forma financial statements for Gavin Industries, a mature U.S. manufacturing firm with three distinct geographic divisions in the Midwest, South and West. Epworth prepares estimates of sales for each of Gavin’s divisions using economists’ estimates of next-period GDP growth and sums the three estimates to forecast Gavin’s sales. Epworth’s approach to estimating Gavin’s sales is: A) inappropriate, because sales should be forecast on a firm-wide basis and are unlikely to be related to GDP growth B) appropriate. C) inappropriate, because sales should be forecast on a firm-wide basis. View less » Oct 07 2015 05:56 PM



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