When constructing a pro forma statement, net working capital generally:

When constructing a pro forma statement, net working capital generally:


-Remains fixed.


-Varies only if the firm is currently producing at full capacity.


-Varies only if the firm maintains a fixed debt-equity ratio.


-Varies only if the firm is producing at less than full capacity.


-Varies proportionally with sales.



Answer: Varies proportionally with sales


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