PRO FORMA STATEMENT
\pɹˈə͡ʊ fˈɔːmə stˈe͡ɪtmənt], \pɹˈəʊ fˈɔːmə stˈeɪtmənt], \p_ɹ_ˈəʊ f_ˈɔː_m_ə s_t_ˈeɪ_t_m_ə_n_t]\
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A financial statement that estimates the firm's future financial position based on the analysis of current trends and assumptions. The use of pro forma statements is primarily to prepare scenarios that could occure. It is also used to create business plans, provide an estimation of the required cash and during the submission of proposals for financing.
By Henry Campbell Black
