The key inputs for preparing pro forma income statements using the simplified approaches are the ________.

Question

Quizplus · Accepted Answer

The key inputs for preparing pro forma income statements using the simplified approaches are the sales forecast for the coming year and financial statements for the preceding year. This is because the pro forma income statement is an estimate of the company's expected financial performance in the future, based on past performance and anticipated sales growth. Therefore, the sales forecast for the coming year provides the basis for estimating the company's future revenue, while the financial statements for the preceding year provide information on the company's historical performance and expenses, which are used to project future expenses and profitability.

The Key Inputs for Preparing Pro Forma Income Statements Using