To Estimate the Firm's Potential Performance for the Coming Year,we

question 61

Multiple Choice

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 year

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Definitions:

Statement of Comprehensive Income

A financial report that includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.

Statement of Cash Flows

A financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, dividing activities into operating, investing, and financing.

Retained Earnings Statement

A summary of the changes in the retained earnings in a corporation for a specific period of time, such as a month or a year.

Fair Value

The estimated market value of an asset or liability, based on current prices in an active market.