BUS 402 QUIZ 4

Question 1 

1. The first step in creating the pro      forma income statement is to:

  

 

create a sales forecast.

 

 

determine a reasonable salary and   return on investment in the company.

 

 

find published figures on the   specific type of business in order to forecast sales.

 

 

figure out operating costs and make a   realistic sales estimate.

2 points   

Question 2 

1. ________ ratios help a business      owner evaluate the company's performance and indicate how effectively the      business employs its resources.

  

 

Liquidity

 

 

Leverage

 

 

Operating