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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.
Blossom Lawn expects to have total sales next year totaling $15,000,000 and the firm pays taxes at 35% and will owe $300,000 in interest expenses.
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Sarkozy Ltd is considering the selection of one of a pair of mutually exclusive investment projects. Both would involve purchase of machinery with a life of five years. Projec
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