pro forma financial statement

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Pro Forma Financial Statement

A financial statement that a company prepares to consider the effects of a potential activity. For example, if a company is considering acquiring another, it may prepare a pro forma financial statement to estimate what effect the acquisition would have on its own financial circumstances. A pro forma financial statement can be part of the risk analysis of a situation. See also: Due diligence.

pro forma financial statement

A financial statement constructed from projected amounts. A firm might construct a pro forma income statement based on projected revenues and costs for the following year. Likewise, a firm may wish to develop a set of pro forma statements to determine the effect of a projected stock buyback.
References in periodicals archive ?
Highlights of the combined company will include: Pro forma estimated 2017 average daily production of approximately 47,000 barrels of oil equivalent; Pro forma proved reserves of 136M barrels of oil equivalent as of June 30, 2017 based on SEC pricing, which are 69% oil and 74% located in the Deepwater Gulf of Mexico; Two recent discoveries, Tornado II and Rampart, provide near-term opportunities for growth; Long-term growth profile, underscored by the historic, world-class Zama oil discovery in the shallow waters of Mexico; and Strong pro forma balance sheet and credit profile, highlighted by low leverage and ample liquidity.
The unaudited consolidated pro forma balance sheet of the Global Group as of 30 June 2014 included total assets of RMB 4.
M&T's pro forma balance sheet will have then increased by approximately USD 28 b.
This case was inspired by the desire to have an easy to follow format for a managerial budgeting problem that started with the sales budget and ended with a pro forma balance sheet.
This month we'll begin to put together the data we will use for the calculations needed to produce a Pro Forma Balance Sheet.
Upon completing due diligence and deeming a venture to be worthy of a capital commitment, the investor reviews the company's anticipated revenue projections to identify a period in the future (beginning at 30 or 36 months out) at which the company's cash flow model and pro forma balance sheet suggest that it would be able to return the investor's initial capital contribution and an accrued dividend.
prepares complete key business ratios, pro forma balance sheet, annual budgets, job-costing multipliers and Z-score analyses;
If the impact of the change is significant, consideration should be given to presenting a pro forma balance sheet giving effect to the change as if it had occurred on the balance sheet date.
1 presents the pro forma balance sheet for all priced services in 1987 and 1988, and table A.
BackWeb also released (below) an unaudited, preliminary pro forma balance sheet which reflects the company's position as of August 31, 2012 and the impact of the IBM and HP litigation results.
After doing some research, Sarah decided to complete fourteen budgets in the following order: a sales budget, a schedule of expected cash collections, a production budget, a direct materials budget, a schedule of expected cash disbursements for hulls, a schedule of expected cash disbursements for seats, a schedule of expected cash disbursements for drain plugs, a direct labor budget, a manufacturing overhead budget, an ending finished goods inventory budget, a selling and administrative budget, a cash budget, a pro forma income statement, and a pro forma balance sheet.
In the February 2010 and June 2010 articles by Jason Porter and Teresa Stephenson, there are references to the Beginning Balance Sheet and the Pro Forma Balance Sheet.