MANAGEMENT

Detailed explanation-1: -A pro forma cash flow statement refers to a type of cash flow statement. When drafting this statement, businesses project the cash inflow and outflow expected in the future over specified periods. A typical cash flow statement tracks cash inflows and outflows over a current period rather than projected.

Detailed explanation-2: -Pro forma cash flow statement refers to the cash flow statement prepared by the business entity to prepare the projections of the amount of cash inflow and cash outflow they expect to have in the future from the different activities, including operating and investing, and financing activities.

Detailed explanation-3: -Pro-forma forecasts are usually created from pro-forma financial statements and are forecasted using basic forecasting procedures. When making these forecasts, revenues will usually provide the initial groundwork for the forecast, and expenses and other items are calculated as a percentage of future sales.

Detailed explanation-4: -The pro forma statement of cash flows shows the projected flow of cash into and out of the company during a specified period. The most important function of the pro forma statement of cash flows is to project whether the firm will have sufficient cash to meet its needs.