Finance

Which is NOT true of depreciation as found in the pro forma statement?

Which is NOT true of depreciation as found in the pro forma statement? A) Depreciation, unlike sales, tends to go down each year with the Modified Asset Cost Recovery System (MACRS). B) Unless there is a change to investments in plant, property and equipment increasing the depreciation line item, using the same percentage as that […]

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Date: September 19th, 2020

To estimate the firm’s potential performance for the coming year, we t

To estimate the firm’s potential performance for the coming year, we typically start with the sales forecast from the ________ and prepare a pro forma income statement using the percentages of the ________ for each category. A) finance department; prior year B) marketing department; prior year C) marketing department; next year D) sales department; current […]

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Date: September 19th, 2020

As applied to the pro forma balance sheet, which of the statements bel

As applied to the pro forma balance sheet, which of the statements below is FALSE? A) The company looks at the prior year’s balance sheet and finds each line’s percentage of total assets. B) The company forecasts the coming year’s total assets based on expected changes such as the completion of capital projects, desired levels […]

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Date: September 19th, 2020