In order to prepare the proforma financial reports, the existing financial reports are used as starting point. The following forecasts and estimations should be made in order to prepare the proforma financial reports:

• Sales, direct materials, direct labor and manufacturing overhead budgets,
• The forecasted sales, management expenses budget,
• Existing funding structure,
• The ownership structure,
• The volume and amount of direct materials,
• The volume and amount of finished products,
• The existing amount of fixed assets,
• The receivables and payables,
• The sales and proceeds,
• Non operating and extraordinary expenses,
• Operating expenses,
• Net profit.

Therefore, the correct option is E.