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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.
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Ken started college at the age of 18 with $63,450 already saved, because 18 years ago his saving account 7.25 per year.
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