Why use cash to plug figures in a pro forma projection.
Not what you're looking for?
Why does it make sense to let the firm's cash balance or a short-term liability account serve as the plug figure in pro forma projections? Why not use gross fixed assets as the plug figure?
Purchase this Solution
Solution Summary
The solution give four reasons why the cash account or a current liability account is the most reasonable place to 'balance' a pro forma projection.
Solution Preview
Here are some reasons why cash would be plugged to balance pro-forma financial statements:
1. The plug undoubtedly really belongs in current assets in cash, accounts receivable or inventory. If the plug is a negative amount, a current liability account such as accounts payable makes the most sense for ...
Purchase this Solution
Free BrainMass Quizzes
Paradigms and Frameworks of Management Research
This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.
Situational Leadership
This quiz will help you better understand Situational Leadership and its theories.
Introduction to Finance
This quiz test introductory finance topics.
Employee Orientation
Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.
Writing Business Plans
This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.