What is PRO FORMA STATEMENT?

A financial statement that estimates the firm’s future financial position based on the analysis of current trends and assumptions. The use of pro forma statements is primarily to prepare scenarios that could occure. It is also used to create business plans, provide an estimation of the required cash and during the submission of proposals for financing.

More On This Topic



Link to This Definition
Did you find this definition of PRO FORMA STATEMENT helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary