Pro forma

Pro forma, according to Investopedia (n.d.), is the display of different financial scenarios based on a business’s financial status from a current or previous financial status. In as much, financial data in a pro forma financial statement includes information from either the revenue or the expenses aspect. The purpose of the pro forma form is to express the financial statement without the extraordinary ventures. The form also displays the financial situation for possible projects. In other words, what would happen financially if the organization were to move forward with the proposed project? The figures presented by the pro forma financial statement are not always in compliance with the GAAP (Generally Accepted Accounting Practices). However, this is not a problem since the Securities and Exchange Commission (SEC) has implemented strict requirements concerning reporting of this type of financial information. According to Investopedia (n.d.), “The SEC also made it clear that utilizing pro forma results to lie about or grossly misconstrue GAAP-based results would be deemed fraud and punishable by law if investors were misled”(para.…

also actively recruit for new suppliers and vendors who deal mainly with organic and eco-friendly products. Lastly, Tim could also benefit into looking to expand his business in the extended future. Threats: Tim needs to step up his game, so that competitors won’t move in on his market. When you get one bad review, you are likely to lose customers. Tim cannot afford something like this happening. He needs to have sales and profits to succeed. Economic Environment/Finance and…

IRS-specified term of 3-7 years. Explicitly regarding pro forma analysis, CAPEX are projected costs to maintain the asset in good repair, and a line-item section under improvements of the depreciation schedule, along with tenant improvements (TI). Moreover, CAPEX will vary year to year based on “wear and tear” and planned capital improvement projects, and can be calculated by a percentage of revenue, square foot, or unit. As a result, Linneman (2011) notes that “Forecasted cap ex reflects…

not need to report their profitability and financial forecast because of the nature of their industry but rather, just present pro-forma analysis to show the company’s operations. They are useful tools to help identify a company's core value drivers and analyse changing trends within company operations. Sometimes this is all that some investors are interested in so it’s irrelevant to present financial information. Pro-forma earning paint a hypothetical picture of what a company’s earning may…

Financial Reporting Regulation and the Reporting of Pro Forma Earnings is a empirical study that examines the effect of SOX financial regulations on pro forma reporting behavior. The authors of this study use the S&P 500 for their study. Advocates of pro forma suggest that information from pro forma statements provide useful information that is in demand; while, critics of pro forma believe it to be misleading, especially to the more naive, amateur investor. Pro forma offers alternative…

Income Statement Forecasted 2016 Pro Forma 2017 Pro Forma 2018 Pro Forma 2019 Sales 3,751,350.00 4,210,050.00 4,668,609.00 5,127,300.00 COGS 2,518,656.39 2,826,627.57 3,134,498.04 3,442,469.22 Gross Profit 1,232,693.61 1,383,422.43 1,534,110.96 1,684,830.78 Operating Expense 599,814.00 599,814.00 599,814.00 599,814.00 Net Income before taxes 632,879.61 783,608.43 934,296.96 1,085,016.78 Table 6.1 Average Growth Rate 2017: 783,608.43 – 632,879.61/ 632,879.61 = 0.2382 Average Growth Rate…

Abortion - a debate where two sides make harsh accusations; that one is anti-choice, and that the other is anti-life. It is an argument that dares to ask what gives something the right to life? The first article I will be exploring is one that supports the pro-choice argument, titled, “The Anti-Abortion Fallacy”. The composer, Peter Singer, argues the belief that anti-abortion laws make women across the globe suffer. He demonstrates how living women can be endangered by the facts he presents…

The topic of abortion will stir up ethical, legal and religious sentiments throughout the nation, as it is highly debatable. Although a subjective choice, many people believe that abortion is illegal and most of all, immoral. Your Pro-Life Supporters use science, religion, and personal rights to combat a woman’s right to the basic reproductive freedom. On the other side of the argument, Pro-Choice Supporters believe that the government should not put restrictions on a woman’s choice to…

Some say that as long as their child is in safe hands, they will do whatever it takes, while others do not want to change their morals or at least negotiate to figure out a solution. Thomas G. Wenski, the author of the article ‘Restore the Rights of Parents on Abortion,’ states that, “nevertheless, both those who identify themselves either as pro-life or pro-choice should be able to agree that a parent’s first responsibility is to nurture and protect their child” (Wenski). No matter your morals…

beginning with Great Britain when they enacted antiabortion laws and the US slowly followed behind. However, in 1973, the Roe v. Wade case ignited a fire and the decision for a woman to have the choice to terminate her pregnancy was made legal. Abortion has since been argued as to whether it should remain legal as it is or become completely outlawed. Subsequently today, 50% of US citizens are pro-choice. A pro-choice supporter believes that abortion is a woman 's reproductive…