The ________ is the critical connection between the pro forma income statement and the pro forma balance sheet.
A)change in net working capital
B)change in cost of goods sold
C)change in dividends
D)change in retained earnings

Question

Quizplus · Accepted Answer

The change in retained earnings links the pro forma income statement and the pro forma balance sheet, as it reflects the portion of net income that is retained in the business and affects the equity section of the balance sheet.

The ________ Is the Critical Connection Between the Pro Forma