How the percent of sales method is developed

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Reference no: EM13300244

The "percent of sales method" is a method of preparing pro forma financial statements. Which of the following would be an example of how the "percent of sales method" is developed?

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's sales.
c. Approximate liabilities by applying a percent of projected sales, using the last five-year average of liabilities as a percent of sales.
d. All of the above.
e. None of the above.

Reference no: EM13300244

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