MGT 300 - Week 4 - Pro Forma

Apr 17th, 2015
Studypool Tutor
University of Phoenix
Course: Business and Management
Price: $15 USD

Tutor description

Word Count: 2242
Showing Page: 1/10
Pro Forma: A beneficial business toolDennis Chaney, Julie Coleck, Ranaldo Daggs, & Viviana RuckerUniversity of PhoenixMGT/300January 30, 2012Pro Forma: A beneficial business toolA business cannot survive without a financial backbone. Capital, human resources, and performance affect a business's financial outcome. Thus, it is important to create different scenarios involving each of these factors for a better understanding. Pro forma is the most effective way to determine the outcomes of various scenarios. Also, Pro forma offers many beneficial views of a business to those financially invested. Not only can an entrepreneur determine where the financial strengths lie, but also what areas of the business need financial improvement. Pro forma is a useful financial tool for any business.Pro FormaTo continue any further, it is important to understand what pro forma is exactly. According to "Pro Forma Statements" (2007), "Pro forma, a Latin term meaning 'as a matter of form,' is applied to the process of presenting financial projections for a specific time period in a standardized format," (p. 885). In other words, pro forma creates a financial visual throughout different periods for those financially invested. As "Pro Forma Statements" (2007) goes on to state, "Businesses use pro forma statements for decision-making in planning and control, and for external reporting to owners, investors, and creditors," (p. 885). Further, pro forma helps those inves

Review from student

Studypool Student
" Very Satisfied. "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1825 tutors are online

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors