Pro Forma Financial Statement
Pro forma financial statements show income and expenses that may be recognized in the future. Businesses are often 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.
Create a Pro Forma Financial Statement
Complete the following steps to create a pro forma financial statement: Attach a beginning balance sheet to a Projected Income/Expense Summary.
Click the Bal. Sheet menu, open a Balance Sheet Summary, and then select the items you want to flow into the Projected Income/Expense Summary.
Open the projected schedule and decide to feed, sell or carry over the beginning inventory.
To view the pro forma financial statement, click Add / Modify / Delete under the Inc/Exp menu,and then click the PF link on the Projected Income/Expense Summary.
