The pro forma income statement shows the projected flow of cash into and out of the company during a specified period.

Question

Quizplus · Accepted Answer

The pro forma income statement shows the projected revenues and expenses of a company during a specified period, but it does not show the flow of cash into and out of the company. The cash flow statement is the financial statement that shows the inflow and outflow of cash in a business.

The Pro Forma Income Statement Shows the Projected Flow of Cash