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Explain how management goals are incorporated into pro forma financial statements.
Management put a target goal and forecasters makes pro forma financial statements under the assumption that the goal will be reached. For instance, if management's goal is to pay inedible all short-term notes during the coming year forecasters would incorporate this into the pro forma balance sheet by setting Notes Payable to zero.
What is Indirect method Indirect method is what you would probably be familiar with. It requires a lot less information to produce it and hence can be argued to be easier metho
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