Pro Forma Financial Statement
What is a pro forma financial statement? What purpose does it serve?
How do legal and ethical considerations impact pro forma financial statements?
How can pro forma financial statements be used to aid managers in decision-making?
© BrainMass Inc. brainmass.com October 9, 2019, 6:22 pm ad1c9bdddfhttps://brainmass.com/business/financial-statements/pro-forma-financial-statement-86476
Solution Preview
What is a pro forma financial statement? What purpose does it serve?
A pro forma income statement is similar to a historical income statement. However, it projects the future rather than tracking the past. Pro forma income statements are an important tool for planning future business operations. For example, if the projections predict a downturn in profitability, we can make operational changes such as increasing prices or ...
Solution Summary
This solution is comprised of a detailed explanation to answer the request of the assignment of more than 200 words of text.