1What is the primary reason why a pro forma income statement must be prepared before a pro forma balance sheet?
2According to the XYZ Inc. example, which of the following line items does NOT increase proportionately with sales growth?
3If a company had $200,000 in sales last year and expects a 15% annual growth rate, what would be the projected sales for Year 1 in a pro forma income statement?
4How are Retained Earnings calculated for the pro forma balance sheet in the XYZ Inc. example?
5Which stakeholder group uses pro forma statements to gauge a company's future financial health despite these reports not being audited?
6In the XYZ Inc. pro forma balance sheet, if cash is forecasted as 25% of sales and projected sales for Year 2 are $121,000, what is the projected cash amount?
7According to the text, what is the 'closest alternative' for making business decisions when audited financial statements are not readily available?
8If the cost of goods sold (COGS) ratio is 40% and the projected sales for Year 3 are $133,100, what is the projected COGS for that year?
9Which liability item is explicitly mentioned as increasing proportionally with sales in the lesson content?
10What assumption is made regarding Property, Plant, and Equipment (PP&E) in the provided XYZ Inc. example?
