Quick answer: Pro forma financial statements are projected statements built on stated assumptions, such as a loan, expansion or acquisition, to show likely results before the event happens. They include a balance sheet, income statement and cash flow statement.
Pro forma balance sheet
Also searched as balance sheet pro forma or pro forma statement of financial position. It restates assets, liabilities and equity as if the planned event had already occurred.
Pro forma income statement (profit and loss)
Also called pro forma P&L. It projects revenue, cost of goods, expenses and net profit under your assumptions.
Pro forma cash flow statement
Shows expected operating, investing and financing cash movements, which helps lenders judge repayment capacity.
Not the same as a proforma invoice
A proforma invoice is a preliminary bill for a sale. Pro forma statements are financial forecasts for a business.
Frequently asked questions
What are pro forma financial statements?
Projected statements based on assumptions about a future event.
What is a pro forma balance sheet?
A forecast of assets, liabilities and equity after a planned event.
What is a pro forma income statement?
A projected P&L showing expected revenue, costs and profit.
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