1. Which type of financial statement analysis is most commonly used to create a baseline estimate for a financial forecast? a. Trend analysis b. Common-size analysis c. Ratio analysis d. Liquidity analysis 2. What key element of the income statement is used to estimate several other key income statement lines? a. Cost of goods sold b. Gross margin c. Sales d. Fixed costs 3. Jamal wants to forecast sales for the first quarter of next year. His first assumption is that sales will likely grow by 3% in the coming year. If Jamal's monthly sales were $10,000, $9,000, and $11,000 in the first quarter of this year, what should his sales forecast be for the first quarter of next year? a. $30,000 b. $30,900 c. $33,000 d. $33,500 4. In the context of a firm's financial statements, what does pro forma mean? a. Forward looking b. Historical c. Board approved d. Audited 5. What is the most common length of a forecast if the goal is to forecast cash and assess possible short-term growth? a. 3 months b. 12 months AA

1. Which type of financial statement analysis is most commonly used to create a baseline estimate for a financial forecast? a. Trend analysis b. Common-size analysis c. Ratio analysis d. Liquidity analysis 2. What key element of the income statement is used to estimate several other key income statement lines? a. Cost of goods sold b. Gross margin c. Sales d. Fixed costs 3. Jamal wants to forecast sales for the first quarter of next year. His first assumption is that saler will likely grow by 3% in the coming year. If Jamal's monthly sales were $10,000,$9,000, and $11,000 in the first quarter of this year, what should his sales forecast be for the first quarter of next year? a. $30,000 b. $30,900 c. $33,000 d. $33,500 4. In the context of a firm's financial statements, what does pro forma mean? a. Forward looking b. Historical c. Board approved d. Audited 5. What is the most common length of a forecast it the goal is to forecast cash and assess possible short-term growth? a. 3 months h 12 months