Pro Forma Income Statement Service Business

A pro forma income statement is a financial statement that uses the pro forma calculation method mainly to draw potential investors focus to specific figures when a company issues an earnings.

Pro forma income statement service business. Enter business plan assumptions in a step by step format recurring and one time. Pro forma income statement 2013 2014 2015 sales 172 800 228 122 262 340 direct cost of goods 0 0 0 other 0 0 0 total cost of sales 35 304 32 400 27 600 gross margin 172 800. Our comprehensive pro forma excel model has helped thousands of entrepreneurs build detailed financial models get funded and get launched. Translated from latin pro forma literally means for the sake of form or as a matter of form in a business sense it means assumed predicted or forecasted.

Whereas a standard financial statement is based on a company s past performance a pro forma financial statement shows what a company hopes to earn. They can also determine whether sales can be expected to run above average in let s say june. For example they can determine whether expenses can be expected to run higher in the first quarter of the year than in the second. Pro forma balance sheets the pro forma balance sheet looks at a forecast after a change like financing or acquisition.

Pro forma income statement is the statement prepared by the business entity to prepare the projections of income and expenses which they expect to have in the future by following certain assumptions such as competition level in the market size of the market growth rate etc. Types of pro forma statement. Pro forma income statements also known as a profit and loss statement this accounting document shows sales transactions and expenses as well as cost of goods or services sold and projected net income and profit. 1 pro forma of historical profit and loss statement.

A pro forma income statement combines the historical income statement of the acquiring company and a pro forma income statement of the business to be acquired for the previous five years if.