When estimating the impact of a capital project on a pro forma balance

When estimating the impact of a capital project on a pro forma balance sheet, one should note that financing can come from a variety of sources. The resources can include increases in current assets and long-term assets.

Indicate whether the statement is true or false.

ANSWER

Answer: FALSE
Explanation: When estimating the impact of a capital project on a pro forma balance sheet, one should note that financing can come from a variety of sources. The resources can include NEW DEBT, INCREASES IN CURRENT LIABILITY ACCOUNTS, and CASH RETAINED THROUGH OPERATIONS.