Proforma Financial Statement

• These are similar to historical financial statements but are focused on future rather than the past
• They also make a firm re-think its strategies and do necessary changes if necessary
• It is necessary to be made if firm is seeking funding

Types

Pro Forma Income Statement

show the projected results of the operations of a firm over a specific period

Pro Forma Balance Sheet

shows a projected snapshot of a company's assets, liabilities, owner's equity at a specific point in time

Pro Forma Statement of Cash Flows

shows the projected flow of cash into and out of a company in a specific period