What is the purpose of pro forma financial statements on this table?
Porforma financial statements are considered as forecasted financial statements for future years based on hypothetical scenarios by using different assumptions tools like financial modeling, scenario modeling and financial projections for planning and budgeting
They are useful for comapnies, investors, creditors, to predict the future performance of business based on future uncertain events and certain financial assumptions.
They are very useful tool for business planning, as they helps in horizontal analysis of financial statements based on different financial assumptions that can helps to decide future projects
Pro forma statements are helpful for making operating and financial decisions of a business For ex: if a company is considering to raise new debt, it can use pro forma financial statements to determine how this desicion will have effect on the business, enabling to plan for the business beforehand
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