When preparing a projected income statement, which of the following additional information, other than the financial statements would probably not be relevant?
A)The competitive environment
B)New versus old store mix
C)Expected capital expenditure
D)Expected level of macroeconomic activity

Question

Quizplus · Accepted Answer

Expected capital expenditure is typically not directly relevant to the preparation of a projected income statement because capital expenditures are related to the acquisition of capital assets and are reflected on the balance sheet and in cash flow statements, rather than affecting the income statement directly. The income statement primarily reflects revenues, expenses, and profits over a period of time, not the purchase of long-term assets.

When Preparing a Projected Income Statement, Which of the Following