When developing a pro forma balance sheet which of the following is typically the LAST item to be estimated?
A)inventory
B)total assets
C)external financing
D)cash

Question

Quizplus · Accepted Answer

External financing is typically the last item to be estimated because it is dependent on the accuracy of all the other items in the pro forma balance sheet. Once all other items have been estimated, it becomes easier to determine the amount of external financing needed to balance the sheet.

When Developing a Pro Forma Balance Sheet Which of the Following