You are getting ready to prepare pro forma statements for your business.Which one of the following are you most apt to estimate first as you begin this process?
A)fixed assets
B)current expenses
C)sales forecast
D)projected net income
E)external financing need

Question

Quizplus · Accepted Answer

The sales forecast is typically the first item to be estimated when preparing pro forma statements. This is because all other items, such as expenses and net income, are directly influenced by expected sales. It is important to have a realistic and accurate sales forecast in order to create a reliable pro forma financial statement.

You Are Getting Ready to Prepare Pro Forma Statements for Your