![]() ![]() Start composing your pro forma by projecting your company’s overall sales and costs of goods sold (COGS). The first thing you have to do is to request access to your company’s data inventory and check on your past and latest income statement.Take note of the items that are prone to changes such as the sales and expenditures’ figures. To walk you through in making one, take heed on our ready-made outline below. By far, pro forma income statements are the most complicated. Even though it’s not considered an official document, you still have to treat it as one. Pro Forma Cash Flow Statement – This pro forma discusses the cash inflows and outflows of a company, such as investments.Ĭreating a pro forma depends on what kind of financial document you are trying to make. ![]() Pro Forma Balance Sheet – This type of pro forma presents the projections on the balances of assets, liabilities, and equity. Lastly, it also predicts the outcome of acquisitions. Second, it ensures that the financial reports follow the Generally Accepted Accounting Principles (GAAP). Pro Forma Income Statement – This type of pro forma has three functions. ![]() These documents have three general types, including pro forma income statement, pro forma balance sheet, and pro forma cash flow statement. Pro Forma financial statements are other forms of financial reports that organizations issue to present financial assumptions with past accounting and financial statement analysis results as their basis. Types of Pro Forma in Financial Accounting The use of pro forma is common in real estate and construction industries. Common pro forma documents take the forms of invoices, job applications, resumes, receipts, and quotations. They explained that the said documents help professionals express their interests in making business transactions and disclosing their respective intentions or result projections. The Corporate Finance Institute (CFI) states that any form of pro forma documents functions like letters of intent (LOI). Any document that presents assumptions, forecasts, or presentations of informal information representing a formal document is considered a pro forma. ![]()
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