When constructing pro forma income statements which of the following is the last item to be estimated?
A)sales
B)the change in retained earnings
C)depreciation expense
D)taxes

Question

Quizplus · Accepted Answer

The change in retained earnings is the last item to be estimated on pro forma income statements because it is calculated after accounting for all revenues, expenses, and taxes, reflecting the final amount of net income that is retained in the business after dividends are paid out.

When Constructing Pro Forma Income Statements Which of the Following