Accounting - Projections

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Topics in Accounting:
Basic Accounting      Projections      Credit & Collections      Purchasing/Cost Control
- Ask Bob About Pro Forma Financial Statements - Streetwise Tips on Pro Forma Financial Statements
"First, think of pro formas as tools for running your business, and only second as predictions of the future."

Pro Forma Income Statements
"A pro forma income statement is similar to a historical income statement, except it projects the future rather than tracks the past. Pro forma income statements are an important tool for planning future business operations."

Pro Forma Balance Sheets
"A pro forma balance sheet is similar to a historical balance sheet, but it represents a future projection. Pro forma balance sheets are used to project how the business will be managing its assets in the future."

Pro Forma Cash Flows
"A pro forma cash flow is created to predict inflow and outflow of cash to your business. It is particularly valuable in predicting when your business may experience a cash shortage."

Cash Flow
"Cash flow, not profits, is the lifeblood of your business. Project it, monitor it, and manage it well before serious trouble starts to brew."

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