To estimate the firm's potential performance for the coming year,we typically start with the sales forecast from the ________ and prepare a pro forma income statement using the percentages of the ________ for each category.
A)finance department; prior year
B)marketing department; prior year
C)marketing department; next year
D)sales department; current year

Question

Quizplus · Accepted Answer

The question asks about estimating future performance, so the most relevant department to consult would be the marketing department, which is responsible for forecasting sales for the coming year. Using the prior year percentages for each category in the income statement would be a logical basis for constructing a pro forma income statement.

To Estimate the Firm's Potential Performance for the Coming Year,we