This is the process of estimating expected future cash flows of a project using only the relevant parts of the balance sheet and income statements.

Question

Quizplus · Accepted Answer

Pro forma analysis involves forecasting the future financial performance of a project based on the historical financial data available. It involves estimating the expected cash inflows and outflows of a project, by using relevant parts of balance sheet and income statement. Hence, option C is the correct answer. Options A, B, and D are not related to the process of estimating expected future cash flows using relevant parts of the balance sheet and income statements.

This Is the Process of Estimating Expected Future Cash Flows