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How to create a pro forma income statement Create a baseline income statement. Define the time period. Determine the assumptions you will use in your projections. Forecast your revenue and expenses. Add assumptions and projected values in the income statement. Perform a scenario analysis to test your assumptions.
What is a proforma request?
A pro forma invoice is sent to a buyer before the sale is final, to help identify products and prices that will be involved in the transaction. Its not really an invoice at all because its not actually a request for payment.
What does proforma mean?
From the Latin meaning for the sake of form, pro forma generally means something done for the sake of appearances, or formality. Companies use pro forma financial statements to project the consequences of a corporate strategy or future scenario.
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