Question

The ________ method of developing a pro forma income statement forecasts sales and values for the cost of goods sold, operating expenses, and interest expense that are expressed as a ratio of projected sales.

Answer 1

Answer:

percent of sales.

Explanation:

The method described above is the percentage of sales method, which is characterized by applying a small percentage relative to various organizational costs and expenses on sales so that a projection of the results of the next financial year can be developed. This is a simple method to be applied and accounting information helps organizations to better control and forecast sales growth, increasing their effectiveness and control of financial resources.

Answer 2

Answer:

Percent of sales

Explanation:

A pro forma invoice contains a description of goods and services that is being provided by the supplier.

It is sent to the buyer before shipment of the product.

The pro forma invoice also contains information like the eight of the good and shipping cost.

The percentage of sale method of preparing pro forma invoice focuses on the amount of funding that is required to increase sales.

This method forecasts sales and values for the cost of goods sold, operating expenses, and interest expense that are expressed as a ratio of projected sales.