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What do financial managers look for when they analyze pro forma financial statements?
After the pro forma financial statements are finished, financial managers examine the forecast to determine
(1) what present trends suggest what will happen to the firm in the future.
(2) what effect management's current budgets and plans will have on the firm.
(3) what actions to take to evade problems revealed in the pro forma statements.
Plugging back of the future of profit means the reinvestment by the concerns of its surplus in the business. it is an internal financial of the business and it is more suitable for
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