FIN 571 Week 6 Analyzing Pro Forma Statements

Analyzing Pro Forma Statements

FIN/571

Create a pro forma cash flow budget for the organization for at least the next 5 years

Analyzing Pro Forma Statements

General and financial managers can both benefit from forecasting financial statements. Proforma statements assist financial managers to plan accordingly, in terms of the company's financial needs. How much financing is needed and when it is needed can be determined by acquiring an estimate of the company's future balance sheet accounts and income statement. Hence, the purpose of the Proforma analysis is to forecast the company's financial statements under a particular condition (Parrino et al., 2012).

Subsequently, total assets must equate the sum of total liabilities and owner's equity;...