Question

Whats the purpose for each of the following , how can u compare between them and give simple example for each of them (In simple words)

Pro Forma Cash Flow

Pro Forma Income Statements

Pro Forma Balance Sheet

Break-Even Analysis

Answer 1

Pro Forma Cash Flow to estimate the cash flow INWARDS and OUTWARD on a particular time frame ( monthly, quaterly, and early as required by the business)

if excess cash flow show in the pro forma estimation, this will be helpful for future investment strategy

for example study cash inflows is a good indicator to increase the profit output

Pro Forma Income Statements is used before a acquisition other business or another company, mostly based on certain assumption and projection of prior financial statement, it will help to forecast about company which they plan to buy or merge

for example Company A want to take over Company B, the Company A is analysis with Pro Forma Income Statements which can be used as indicator

Pro Forma Balance Sheet is a projection balance amount  of the future date based on the assigned budgets its a clear measurement to find track of profit and loss

Break-Even Analysis is a financial measurement kid  which helps to determine, whether the your company or a product how many should sell or how many customer to reach to cover the at least the fixed cost,

this will help to alarm your line of loss ( when your sells is below the break even)