Development of Pro Forma Financial Statements Helps a Financial Manager

question 52

True/False

Development of pro forma financial statements helps a financial manager to project the amount of external financing required to support a given level of sales as well as overall financial performance of the firm in the coming year.

Calculate and analyze total assets and total liabilities in different scenarios.

Understand the layout and purpose of the three sections of the statement of cash flows and their interrelationships.

Understand how to prepare and format a balance sheet.

Calculate total revenue, total expenses, and net income from transaction data.

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Definitions:

Justify

To justify means to provide a logical, moral, or legal reason or explanation that supports an action, decision, or concept.

Justiciable Controversy

A controversy that is real and substantial, as opposed to hypothetical or academic.

Substantial Controversy

A significant dispute between parties that involves real and substantial issues which require legal assessment and resolution.

Standing to Sue

The legal right to bring a lawsuit to court, based on having a sufficient connection to and harm from the law or action challenged.