The purpose of the pro forma sources and applications of funds statement is to show the amount owners have invested and/or retained from the venture operations.

Question

Quizplus · Accepted Answer

The purpose of the pro forma sources and applications of funds statement is to show the expected sources and uses of funds for a future period, such as a startup or expansion. It is not specifically designed to show the amount of investment or retention by owners, although this information may be included in the statement.

The Purpose of the Pro Forma Sources and Applications of Funds