Question: Pro forma financial statements can answer the following question: A. How profitable can the firm be, given past sales and expense relationships? B. How much

Pro forma financial statements can answer the following question:

A. How profitable can the firm be, given past sales and expense relationships?

B. How much and what type of financing has been used in the firms operations?

C. If projected sales and sales-expense relationships are accurate, how profitable will the firm be?

D. Has the firm been doing a good job of managing its cash flows?

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