Pro forma statements are idealized financial statements that show the company's average financial performance over the past 10 years.

Question

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Pro forma statements are not based on past performance, but rather on projections or hypothetical scenarios. They are created to illustrate how a company's financials would look under certain conditions, such as after a merger or acquisition, or if a new product line were introduced.

Pro Forma Statements Are Idealized Financial Statements That Show the Company's