1) The key initial element in developing pro forma statements isA.-an income sta

1) The key initial element in developing pro forma statements isA.-an income statement.B.-a sales forecast.C.-a cash budget.D.-a collections schedule.2) A firm has beginning inventory of 300 units at a cost of $11 each. Production during the period was 650 units at $12 each. If sales were 700 units what is the cost of goods sold (assume FIFO)A.-$8000B.-$7700C.-$9000D.-$81003) The difference between total receipts and total payments is referred to asA.-beginning cash flow.B.-net cash flow.C.-cumulative cash flow.D.-cash balance.4) The concept of operating leverage involves the use of __________ to magnify returns at high levels of operation.A.-variable costsB.-marginal costsC.-fixed costsD.-semi-variable costs