Preparing a pro-forma profit-and-loss statement for the first three years of operation takes place before
A) Estimating the initial capital requirements for the business
B) Listing possible sources of start-up capital
C) Computing financial ratios
D) Identifying the product or service

Question

Quizplus · Accepted Answer

A pro-forma profit-and-loss statement is prepared before computing financial ratios, as it provides the necessary financial data needed to calculate those ratios.

Preparing a Pro-Forma Profit-And-Loss Statement for the First Three Years