Pro forma statements for a proposed project should generally do all of the following except: Select one: a. be compiled on a stand-alone basis. b. include all project-related fixed asset acquisitions and disposals. c. include all the incremental cash flows related to the project. d. include taxes. e. include interest expense.

E) include interest expense.

Explanation:

Pro forma statements can be regarded as a financial report that provides financial results about past or future event by making use of presumption or assumptions as well as having knowledge of hypothetical situation.

pro forma calculation method helps in financial result calculation with the use of presumption used in the analysis of Pro forma statements, it provide benchmark in the running of business during the period of a particular year.

It should be noted that Pro forma statements for a proposed project should generally carry out the following

✓ be compiled on a stand-alone basis. ✓include all project-related fixed asset acquisitions and disposals.

✓ include all the incremental cash flows related to the project.

✓ include taxes.

answer; break-even analysis;

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