A pro forma balance sheet needs data from the prior balance sheet,pro forma income statement and the cash budget.

Question

Quizplus · Accepted Answer

A pro forma balance sheet projects the financial position of a company at a specific point in the future. To create this projection, data from the prior balance sheet, pro forma income statement, and cash budget are needed. The prior balance sheet provides a starting point, the pro forma income statement provides estimates of future revenues and expenses, and the cash budget provides information on expected cash inflows and outflows.

A Pro Forma Balance Sheet Needs Data from the Prior