By necessity,building pro forma financial statements requires that managers make many assumptions which will not turn out to be true.Therefore,pro forma financial statements are of little use as a financial management tool.

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Pro forma financial statements can still be useful for financial management, despite the fact that they are based on assumptions that may not all be accurate. These statements can help managers with forecasting and planning for the future, analyzing potential risks and opportunities, and making decisions about investments and financing strategies. However, it is important for managers to be aware of the limitations and potential inaccuracies of pro forma statements and to use them as just one tool among many in their financial management toolbox.

By Necessity,building Pro Forma Financial Statements Requires That Managers Make