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Why is there a first pass and second pass in pro forma statements?
Wiki User
∙ 15y ago
All assumptions executed you will end up with an inbalance between your equities, total assets, and liabilities. And when you compute total assets - liabilities - equity you evaluate either a negative number or a positive number. This number is your discretionary funds needed or discretionary funds available. From this you would need to determine whether you should increase you debt or increase your retained earnings or increase your dividend payout, pay down your debt. Depends what the direction of the company will be in the near or distant future. Once you decide which route to follow make adjustments so that the balance sheet will be more balanced at the full execution of the pro forma.
Wiki User
∙ 15y ago
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Which activity is not included in the first pass of two pass assembler?
In the first pass of a two-pass assembler, it will "prepare" for the second pass, ie. it'll build the symbol table which is later used in the second pass to generate code.
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