A firm plans to depreciate a five year asset in the next planning period. The statements that will be directly affected immediately are the
A. pro forma income statement, pro forma balance sheet, and cash budget.
B. pro forma balance sheet, cash budget, and statement of retained earnings.
C. cash budget and pro forma balance sheet.
D. pro forma income statement and pro forma balance sheet.
Answer:D
A firm plans to depreciate a five year asset in the next planning period. The statements that will be directly affected immediately are the
A. pro forma income statement, pro forma balance sheet, and cash budget. B. pro forma balance sheet, cash budget, and statement of retained earnings. C. cash budget and pro forma balance sheet. D. pro forma income statement and pro forma balance sheet.