In developing the pro forma income statement we follow four important steps:
1) compute other expenses,
2) determine a production schedule,
3) establish a sales projection,
4) determine profit by completing the actual pro forma statement.
What is the correct order for these four steps?
A) 1,2,3,4
B) 3,2,4,1
C) 2,1,3,4
D) 3,2,1,4

Question

Quizplus · Accepted Answer

The correct order is to first establish a sales projection, then determine a production schedule, compute other expenses, and finally determine profit by completing the pro forma statement.

In Developing the Pro Forma Income Statement We Follow Four