In developing the pro forma income statement, we follow four important steps: 1) Compute other expenses
2) Determine a production schedule
3) Establish a sales projection
4) Determine profit by completing the pro forma income statement
What is the correct order for these four steps?
A) 1,2,3,4
B) 3,2,4,1
C) 2,1,3,4
D) 3,2,1,4

Question

Quizplus · Accepted Answer

The correct order is to first establish a sales projection, then determine a production schedule, compute other expenses, and finally determine profit by completing the pro forma income statement.

In Developing the Pro Forma Income Statement, We Follow Four