The first step in creating the pro forma income statement is to:
A)create a sales forecast.
B)determine a reasonable salary and return on investment in the company.
C)find published figures on the specific type of business in order to forecast sales.
D)figure out operating costs and make a realistic sales estimate.

Question

Quizplus · Accepted Answer

The first step in creating a pro forma income statement is to create a sales forecast, as it serves as the basis for determining revenue projections and estimating expenses.

The First Step in Creating the Pro Forma Income Statement