Which of the Following Is the First Step Involved in Constructing

question 4

Multiple Choice

Which of the following is the first step involved in constructing pro forma financial statements?

• A)Forecasting the next period's balance sheet.
• B)Determining the additional funds needed (AFN) to support expected growth.
• C)Forecasting the income statement.
• D)Determining financing feedbacks.
• E)Computing the firm's operating breakeven point.

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Definitions:

Organizational Structure

The system of rules, roles, and responsibilities within an organization that outlines how activities are directed in order to achieve the organization's goals.

Investigational

Pertaining to the process of conducting systematic inquiry or investigation to discover or examine facts.

Exploitative

Utilizing someone or something unfairly for one's own advantage.

Process Innovation

The introduction of new or improved operational and work methods.