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What do financial managers look for when they analyze pro forma financial statements?
After the pro forma financial statements are finished, financial managers examine the forecast to determine
(1) what present trends suggest what will happen to the firm in the future.
(2) what effect management's current budgets and plans will have on the firm.
(3) what actions to take to evade problems revealed in the pro forma statements.
Benefits of Issue of Securities Initial Public Offering (IPO) of securities gives instant recognition and visibility to the firm, helps to attract and retain skilled personnel,
State the concept of Overtrading Overtrading can result in insolvency which means companies have severe cash flow problems. This means that a thriving company, which may look v
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