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What is the purpose of pro forma statements

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Reference no: EM131110826

What is the purpose of pro forma statements? What inputs are required for preparing them using the simplified approaches?

Reference no: EM131110826

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Describe the judgmental approach for simplified preparation : Describe the judgmental approach for simplified preparation of the pro forma balance sheet.
What are the considerations in imputing : What are the considerations in imputing an appropriate interest rate?
Why does the presence of fixed costs cause : Why does the presence of fixed costs cause the percent-of-sales method of pro forma income statement preparation to fail? What is a better method?
How is the percent-of-sales method used to prepare : How is the percent-of-sales method used to prepare pro forma income statements?
What is the purpose of pro forma statements : What is the purpose of pro forma statements? What inputs are required for preparing them using the simplified approaches?
What is the normal procedure for handling the collection : What is the normal procedure for handling the collection of accounts receivable previously written off using the direct write-off method the allowance method?
What is the cause of uncertainty in the cash budget : What is the cause of uncertainty in the cash budget, and what two techniques can be used to cope with this uncertainty?
How can the two bottom lines of the cash budget : How can the two “bottom lines” of the cash budget be used to determine the firm’s short-term borrowing and investment requirements?
Discuss in terms of accountings measurement function : Of what merit is the contention that the allowance method lacks the objectivity of the direct write-off method? Discuss in terms of accounting's measurement function.

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