Investing and Financial Markets
Business Accounting and Bookkeeping
Financial Statements

What are the basic benefits and purposes of developing pro forma statements and cash budgets?

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Wiki User
2007-05-29 13:13:34
2007-05-29 13:13:34

The pro-forma financial statements and cash budget enable the firm to determine its future level of asset needs and the associated financing that will be required. Futhermore, one can track actual events against the projections.Bankers and other lenders also use these financial statements as a guide in credit decisions.

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