Which of the following forecasts the sales, expenses, and net income for the company in some future time period?
A) inventory turnover ratio
B) net working capital
C) pro forma income statement
D) pro forma balance sheet

Question

Quizplus · Accepted Answer

A pro forma income statement is a financial statement that forecasts the sales, expenses, and net income for a company in a future time period, usually a year. Option A and B are financial ratios that do not provide such detailed financial projections, while a pro forma balance sheet forecasts the company's assets, liabilities, and equity at a specific point in time, but not sales, expenses, and net income.

Which of the Following Forecasts the Sales, Expenses, and Net