Pro Forma Income Statement Template – Best Temlpate 1


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Pro Forma Income Statement

The income statement is one of the three main financial reports used by all businesses, from small to large businesses. While income statements may seem overwhelming at first, they are an essential part of doing business and you will soon come to appreciate the valuable information they provide to your business. When used together, the income statement, balance sheet, and cash flow statement provide a clear picture of your company’s overall financial position and serve as useful tools for analysis, planning, and decision-making.

A pro forma income statement is based on forecasts or possibilities. Businesses often use pro forma income statements to predict what might happen before an event occurs. For example, if the company is contemplating a merger, a pro forma income statement can be prepared to determine the profitability of the merger.

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