D Question 19 1 pts The two main inputs required to construct pro forma financial statements are the Of actual financial statements from last year and the sales forecast for the next year O' actual financial statements for the last two years O the cash budget from last year and the sales forecast for the next year O actual financial statements and cash budget from the prior year D Question 20 1 pts The key inputs for preparing pro forma income statements using the percent-of-sales method are the O sales forecast for the coming year and the cash budget for the preceding year O sales forecast for the preceding year and financial statements for the coming year O cash budget for the coming year and sales forecast for the preceding year O sales forecast for the coming year and financial statements for the preceding year 1 pts D Question 21 In a period of rising sales, utilizing past cost and expense ratios (percent-of-sales method) when preparing pro forma financial statements will tend toD Question 21 1 pts In a period of rising sales, utilizing past cost and expense ratios (percent-of-sales method) when preparing pro forma financial statements will tend to O understate costs and overstate profits overstate costs and overstate profits understate costs and understate profits O overstate costs and understate profits D Question 22 1 pts The best way to adjust for the presence of fixed costs when preparing a pro forma income statement is O to proportionately vary the fixed costs with the change in sales to break the firm's historical costs into fixed and variable components O to disproportionately vary the costs with the change in sales O to adjust for projected fixed-asset outlays 1 pts D Question 23 ning year's pro forma balance sheet resulting in a plus figure in a preliminary statement-called the external financing