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 actual pro forma 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 starts with establishing a sales projection (3), then determining a production schedule (2), computing other expenses (1), and finally determining profit by completing the pro forma statement (4).

In Developing the Pro Forma Income Statement, We Follow Four