Creating projected (pro forma)financial statements would allow a business owner to answer which of the following questions?
A)What profit can my business expect to achieve?
B)What sales level must my business reach if our targeted profit is X dollars?
C)What fixed and variable expenses can my business expect to incur at our targeted sales level?
D)All of the above

Question

Quizplus · Accepted Answer

Creating projected (pro forma) financial statements would allow a business owner to answer all of the above questions - determine expected profit, determine necessary sales level to reach a targeted profit, and estimate fixed and variable expenses at a targeted sales level.

Creating Projected (Pro Forma)financial Statements Would Allow a Business Owner