In developing data for accounts receivable for the pro forma balance sheet, the analyst is most likely to turn to the
A) pro forma income statement.
B) cash budget.
C) prior balance sheet.
D) statement of retained earnings.

Question

Quizplus · Accepted Answer

The cash budget provides information on cash inflows and outflows, which are crucial in determining accounts receivable levels. The pro forma income statement and statement of retained earnings may provide information on revenues, but they do not provide a detailed breakdown of when those revenues will be collected. The prior balance sheet may be used as a reference, but it does not take future sales and collections into account.

In Developing Data for Accounts Receivable for the Pro Forma