One of the major components of your strategic plan involves

One of the major components of your strategic plan involves a $35 million dollar marketing campaign. Explain, in no more than two sentences, from what source you would get the money to pay for the campaign and where you might place the campaign expenditures on the pro-forma financial statements. Name both the financial statement and the line.

Solution

Source for campaign is from the borrowed funds and working capital raised by the owner.

The campaign expenditures are to be placed on the asset side of proforma financial statements under the head miscellaneous expenditure not written off and will be below the line.