The two main inputs required to construct pro forma financial statements are the ________.

Question

Quizplus · Accepted Answer

Pro forma financial statements are projections of a company's future financial performance based on the existing financial statements and various assumptions made about the future. The main inputs required to create pro forma financial statements are the actual financial statements from the prior year and the sales forecast for the next year. This information can be used to project the company's future revenues, expenses, and profits, which can be reflected in the pro forma financial statements. The cash budget from the prior year may also be helpful in creating the pro forma statements, but it is not as critical as the actual financial statements and sales forecast.

The Two Main Inputs Required to Construct Pro Forma Financial