MANAGEMENT

Detailed explanation-1: -A balance sheet is a financial statement that reports a company’s assets, liabilities, and shareholder equity. The balance sheet is one of the three core financial statements that are used to evaluate a business. It provides a snapshot of a company’s finances (what it owns and owes) as of the date of publication.

Detailed explanation-2: -A pro forma balance sheet is a key component in your pro forma, your 5 to 7-year projection. It lists out your future assets, liabilities, and stockholders’ equity in the same format as your historical balance sheet.

Detailed explanation-3: -A balance sheet is comprised of two columns. The column on the left lists the assets of the company. The column on the right lists the liabilities and the owners’ equity. The total of liabilities and the owners’ equity equals the assets.

Detailed explanation-4: -Pro forma financial statements are financial reports issued by an entity, using assumptions or hypothetical conditions about events that may have occurred in the past or which may occur in the future.