The \"percent of sales method\" is a method of preparing proforma financial stat

Question

The "percent of sales method" is a method of preparing proforma financial statements. Which of the following would be anexample of how the "percent of sales method" isdeveloped?
a. Forecast expenses by applying a percent of projected sales,using last year's expenses as a percent of last year's sales. b. Forecast assets by applying a percent of projected sales,using current year's assets as a percent of current year'ssales. c. Approximate liabilities by applying a percent of projectedsales, using the last five-year average of liabilities as a percentof sales. d. All of the above. e. None of the above. The "percent of sales method" is a method of preparing proforma financial statements. Which of the following would be anexample of how the "percent of sales method" isdeveloped?
a. Forecast expenses by applying a percent of projected sales,using last year's expenses as a percent of last year's sales. b. Forecast assets by applying a percent of projected sales,using current year's assets as a percent of current year'ssales. c. Approximate liabilities by applying a percent of projectedsales, using the last five-year average of liabilities as a percentof sales. d. All of the above. e. None of the above.

Explanation / Answer

Answer is Option (e) None of the above. Hope it may help you Hope it may help you

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