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Why Is It Important to Compute Pro Forma Common Size

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Why is it important to compute pro forma common size balance sheets and income statements when evaluating a commercial loan?


Definitions:

Protocol System

A set of predefined written procedural guidelines for conducting operations in a specific manner to achieve uniform outcomes.

Computer Software

A collection of data, programs, and instructions that enable a computer to perform specific tasks or operations.

Clinical Decision Support System

A computer-based system that assists healthcare professionals in making clinical decisions by providing evidence-based knowledge in the context of patient data.

Legal Documentation

Official documents and records that pertain to legal matters, transactions, or proceedings.

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