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    Pro Forma Financial Statement

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    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?

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    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 ...

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