What information does the sales budget provide for pro forma financial statements?

Question

Quizplus · Accepted Answer

The sales budget provides the total budgeted sales which is a key component in the preparation of pro forma income statement.

Answer: B
 While the sales budget provides information about total budgeted sales, it does not provide information on cash collections from customers which is used to prepare the pro forma balance sheet.

Answer: C
 The sales budget does not provide information about the ending balance in accounts payable which appears on the pro forma balance sheet.

Answer: A
 The sales budget provides the total budgeted sales which is a key component in the preparation of pro forma income statement.

What Information Does the Sales Budget Provide for Pro Forma