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pro forma income statement means the budgeted or estimated income statement which tries to see the future business position before it happens in actual.

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In using a system approach to financial budgeting planning it is necessary to develop a?

It is necessary to develop a pro forma income statement, pro forma balance sheet, and cash budget.


Does the pro forma income statement and balance sheet need to be created before the cash budget is completed?

Yes


What is a Pro-forma contribution margin income statement?

Proforma contribution margin income statement Sales revenue xxxxLess: Variable cost xxxxContribution margin xxxxLess: Fixed Cost xxxxprofit (Loss) xxxx


What is a pro forma statement?

Hypothetical financial statement showing assets and liabilities, or income and expenses that may be recognized in the future. Pro forma statements also can illustrate projected earnings if a company were to merge with another, or sell off part of its operations. Business firms often are asked to submit pro forma statements when making a loan application. For example, a loan request for bank financing to purchase and carry inventory ordinarily would include a pro forma statement showing the impact of the amount borrowed on current assets and liabilities in the most recent balance sheet. Banks also use pro forma statements to indicate expected revenues from a bank http://www.answers.com/topic/acquisition or http://www.answers.com/topic/merger with another bank, from a http://www.answers.com/topic/joint-venture that involves equity participation with other firms, or anticipated income and cash flow from a new business activity. See alsohttp://www.answers.com/topic/business-plan; http://www.answers.com/topic/financing-statement; Profit Center; http://www.answers.com/topic/what-if-calculation.


What is the plural of pro forma?

The plural form of pro forma is pro formas.


Do I include loan when calculating initial cash flow?

For a projection or pro-forma statement the ultimate answer is yes. Whether it is included on the projected income statement and projected statement of cash flows, and where / how is another story. I've seen banks that require that you exclude it, generally it is included.


Is pro forma one word or two?

It is two words: "pro forma."


What is the plural of Proforma?

The plural of pro forma (or pro-forma) is pro formas (pro-formas)


What is plural of pro foma?

Strictly speaking, pro forma is an adjective and has no plural. It is often used in context as a noun meaning pro forma invoice, pro forma balance sheet, or pro forma report, etc though. When used as such the plural would be pro formas.


Is there a space between pro forma?

No, there is no space between "pro forma." "Pro forma" is a Latin term meaning "as a matter of form."


What are the advantages and disadvantages of pro-forma?

it is pro!


Explain how outsourcing effects the pro-forma income statement?

Doesn't it affect it in the cost of goods sold? Outsourcing should impact direct labor costs and manufacturing costs as well as direct materials costs if in the manufacturing industry depending on what was outsourced.