Jerry is looking to buy a multi-family building. He would like to know much rent can be collected if the building were 100% occupied. Which line of the pro-forma should Jerry look to find this information?

Respuesta :

Answer: The answer is potential revenue

Explanation:

The proforma statement is a income statement prepared to know the revenue and the expenses of the property within an accounting period. It shows the net income realised from the building at the end of the accounting period. Every investors wants a return on their investment, no investor will want to invest his capital in a business where their will be no return. The proforma statement help the investors in the purchase of a building to know what the investors expect to gain if the investors buy the building .

In the preparation of the proforma statement, the first item on the line is the potential revenue if the building were 100% occupied. Therefore the line in which Jerry can find the information he is looking for is the potential revenue line.