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What Is a Pro Forma Sources and Applications of Funds

question 78

Essay

What is a pro forma sources and applications of funds statement? Give examples of sources and used of funds.


Definitions:

Stock Dividend

A dividend payment made in the form of additional shares rather than a cash payout.

Stock Split

An increase in a firm’s shares outstanding without any change in owner’s equity.

Retained Earnings

Profit that is not distributed to the shareholders but is kept by the company for future investment or to pay off debt.

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