There are a variety of ways to produce pro formas, but they usually rely on two primary inputs. One of these primary inputs is ________.
A) the projected sales for the coming year
B) the projected sales for the past year
C) next year's financial statements
D) this year's financial statements

Question

Quizplus · Accepted Answer

Pro formas typically rely on projected data as inputs, and one of the primary inputs is usually the projected sales for the coming year. This information is used to estimate future revenue and expenses, and ultimately to project the company's financial performance. The other primary input may vary depending on the specific purpose and scope of the pro forma, but could include factors such as expected expenses, capital expenditures, or changes in operating costs.

There Are a Variety of Ways to Produce Pro Formas