The first step to creating a pro forma income statement is to ___________________________.
A) estimate the amount of profits
B) estimate the amount of sales for the coming 12 months.
C) Estimate sales costs and expenses.
D) Count the number of potential employees.
E) None of the answers apply.

Question

Quizplus · Accepted Answer

The first step in creating a pro forma income statement is to estimate the amount of sales for the coming 12 months, as sales projections are the foundation for forecasting other financial elements.

The First Step to Creating a Pro Forma Income Statement