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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.
Under what circumstances would market to book value ratios be misleading? Explain. The Market to Book ratio is helpful, however it is only a irregular approximation of how li
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strengths and weakness
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