What is the logic of the percentage of sales method for constructing pro forma statements On a year to year basis, which balance sheet and income statement items do you think will fluctuate most closely with sales, and which items are not likely to vary as directly with sales volume ...

The logic behind percent of sales method for calculating pro forma st ...

What is the logic of the percentage-of-sales method for constructing pro forma statements? On a year-to-year basis,

Question:

What is the logic of the percentage-of-sales method for constructing pro forma statements? On a year-to-year basis, which and income statement items do you think will fluctuate most closely with sales, and which items are not likely to vary as directly with sales volume?
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...