Which of the following is the initial and most important step in the preparation of pro forma financial statements?

Question

Quizplus · Accepted Answer

The most important and initial step in the preparation of pro forma financial statements is projecting the firm's sales revenues for the planning period. This allows for the estimation of future cash inflows and helps in determining the level of investment needed in current and fixed assets, as well as the cost of raw materials and borrowed funds. Therefore, option C is the correct answer.

Which of the Following Is the Initial and Most Important