1. Would you agree that computerized corporate planning models were a fad during the 1990s but that because of a need for flexibility in corporate planning, they are no longer used by most firms? Explain.

2. Certain liability and net worth items generally increase spontaneously with increases in sales. Put a check mark (?) next to those items that typically increase spontaneously.

Accounts payable                     __________

Notes payable to banks            __________

Accrued wages                         __________

Accrued taxes                           __________

Mortgage bonds                      __________

Common stock                         __________

Retained earnings                     __________