Way to incorporate management goals

Explain in brief the way to incorporate management goals into pro forma financial statements.

E

Expert

Verified

Management makes a target goal and forecaster makes use of data from budgets into pro forma financial statements assuming that the budget figures will occur.


For illustration, if goal of the management is to pay off all small-term notes in next year, then forecasters will include this in the pro forma balance sheet by making Notes Payable to zero.

   Related Questions in Financial Management

©TutorsGlobe All rights reserved 2022-2023.