How do you forecast a pro forma balance sheet?

How do you forecast a pro forma balance sheet?

How to Create a Pro-Forma Balance Sheet

  1. Step 1: Short Term Assets. The first two items on your pro-forma balance sheet will be your current cash assets and your accounts receivable.
  2. Step 2: Long Term Assets.
  3. Step 3: Total Assets.
  4. Step 4: Liabilities.
  5. Step 5: Final Tabulations.

What is a pro forma forecast?

A pro-forma forecast is a financial forecast based on pro-forma income statements, balance sheets, and cash flow statements. Pro-forma forecasts are usually created from pro-forma financial statements and are forecasted using basic forecasting procedures.

What is a pro forma operating budget?

A pro forma budget forecasts revenues and expenses in advance for a particular project, such as a merger, loan, bankruptcy, new debt or equity payments. A pro forma operating budget depicts the anticipated results of the proposed change, including the projected cash flows, net revenues and taxes.

How are pro forma projections calculated?

Estimate the amount of expenses you will have based on the ratios obtained for your industry. Multiply the sales total by the percent of sales factor for each applicable expense category. Fill in the monthly expense totals on the template you are using.

What is the difference between a proforma and a budget?

A pro forma — Latin for “as a matter of form” — budget is a predicted budget based on unusual circumstances or possible changes to your company’s structure, revenues, profits or expenses. A pro forma operating budget can help your company prepare for changes such as mergers, investments, loans or acquisitions.

Are pro forma financials audited?

The historical financial statements of the entity (or, in the case of a business combination, of each significant constituent part of the combined entity) on which the pro forma financial information is based have been audited or reviewed.