Prepare a pro-forma statement of cash flows using the latest information available and the percentage-of-sales method, ratio analysis, or vertical or horizontal analysis to calculate the future profit or loss (i.e., create a fictitious scenario for management to use to calculate a "what-if" scenario).
- Prepare a pro-forma statement for the next three years using the -percentage-of-sales method, ratio analysis, or vertical or horizontal analysis.
- Create the pro-forma statement of cash flows providing explanation of the method chosen and financial ratios used.
- Was an inflation rate used? How was the inflation rate determined?
- Is there a stated interest rate for debt financing? How does this change projections?