Which of the Following Should Be Included When Compiling Pro

question 89

Multiple Choice

Which of the following should be included when compiling pro forma statements for a proposed investment? I. forecasted sales
II) start-up costs
III) aftertax salvage value of any assets sold
IV) anticipated changes in net working capital

• A) I only
• B) II and IV only
• C) I, II, and III only
• D) II, III, and IV only
• E) I, II, III, and IV

---

Definitions:

Price Elastic

A term referring to the responsiveness of the demand or supply of a good or service to changes in its price.

Harvest

The process or period of gathering in crops.

Market Conditions

Refers to the various economic and market factors influencing the buying and selling dynamics in a particular market at any given time.

Elasticity of Demand

A gauge of the responsiveness of the amount of a product consumers want to buy to shifts in its price, evidencing how changes in cost affect demand.