Significance of Proforma Income Statement скачать в хорошем качестве

Significance of Proforma Income Statement

What is significance of proforma income statement? Proforma income statement is used to provide the summary of all the profits earned by a new enterprise, in the first year. It projects the profit computed by subtracting projected costs and expenses from the projected revenue. Projected net profit = Projected Revenue – Projected cost. While preparing the proforma income statement, the first thing to be computed is the ‘sales by month’. Any of the following available forecasting techniques are used for this purpose. Consumer opinion Surveys Expert opinions Financial data available from start-up ventures in the same industry or sector. Industry sales Marketing research. Our own experience or others’ experience. While preparing the proforma income statement one need not be conservative for the sake of initial planning. However if the estimates are conservative and result in substantial profits, it adds credibility to the bright future prospects of the enterprise. Additional content on this topic can be found at http://www.eduxir.com/curriculum/cbse...