Proforma income statements often are used as planning tools and financial analysis. They usually are based on past information. But they can be drawn by estimating and making assumptions based on figures and results in other, similar situations.
Proforma income statements project expenses and revenue into the future for a specified number of quarters or years. They often are created for making significant decisions, such as launching a new product line, expanding production, considering a merger, etc.
For more information, go to aaupwiki.princeton.edu/index.php/Proforma_Financial_Statement.
one compares the proforma to the current income statement and balance sheet.
False
Proforma contribution margin income statement Sales revenue xxxxLess: Variable cost xxxxContribution margin xxxxLess: Fixed Cost xxxxprofit (Loss) xxxx
it is called a "proforma." it looks like an income statement covering 5 yrs, 1-3 yrs, by the year and last 2, combined
statement of retained earnings
rental income
Comparative income statement is same as normal income statement with little addition of that income statement as well from which comparison is required.
Performa is a mis-spelling of proforma. Use Proforma: Description of financial statements that have one or more assumptions or hypothetical conditions built into the data. Often used with balance sheets and income statements. Example: Provided to show rent or income projections upon acquisition of Commercial Real Estate, or a Business so as to justify obtaining of financing for the purchase - Used to demonstrate the Borrower's ability to repay the loan based on income projections taking into account Mortgage or loan terms, and actual or projected income based on reasonable and qualified assumptions.
Comparative income statement is same as normal income statement with little addition of that income statement as well from which comparison is required.
Following are two catagories of income statement: 1- Single Step Income statement 2- Multy-step income statement
no. income statement is a only a statement in financial statements.
projected income statement is the estimated income statement to estimate the future business position.