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18.13: Video Activity

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What Is a Pro Forma?

1.
What is a pro forma financial statement? What are some scenarios in which you might find a pro forma financial statement helpful?
2.
Why might someone compile a pro forma financial statement that is intentionally inaccurate? What factors contribute to the accuracy of a pro forma?

Cash Flow Forecasting Explained: How to Complete a Cash Flow Forecast Example

3.
Assume you are the financial manager for a large electronics retailer. What benefits could you gain from preparing a cash forecast?
4.
Assume you are the financial manager for a large electronics retailer. You are going to prepare a cash forecast. What key cash inflows and outflows do you anticipate will be in your forecast?

This page titled 18.13: Video Activity is shared under a CC BY 4.0 license and was authored, remixed, and/or curated by OpenStax via source content that was edited to the style and standards of the LibreTexts platform.

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