Pro-Forma Financial Statements Are Prepared Using the Information Developed in the Budget

question 185

Essay

Pro-forma financial statements are prepared using the information developed in the budget process.These statements reflect the results of operations and the financial position of the organization as if all actions planned in the budget had occurred.Many of the master budget components provide direct input to the pro-forma financial statements.
Required:
For each of the following components of the financial statements, indicate which pro-forma financial statement will show the item (Income Statement or Balance Sheet) and the budget(s) within the master budget where the item originated.Number 1 provides an example.

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Definitions:

Sensory Management

A strategy that involves managing and manipulating the sensory experience of consumers to influence their perception and behavior towards a product or environment.

Retail Atmosphere

The overall aesthetic, mood, and feel of a retail environment that influences the consumer's shopping experience.

Retailing Mix

A combination of factors under a retailer's control which includes product assortment, price, place, promotion, personnel, and presentation, used to attract and satisfy customers.

Placards

A sign or notice for display in a public place.