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Business Definition for: pro-forma statement
pro-forma statement
(from Latin pro forma, "according to form"). Financial statements showing what is expected to occur, as opposed to actual results.
Example: The broker prepared a pro-forma statement for the prospective purchaser (Table 41). It showed expected cash flows for the property:
| TABLE 41 |
|
| PRO-FORMA STATEMENT | |
| Pro-forma Cash Flow Statement Next Year, Projected |
|
| Rental income | $10,000 |
| Taxes | -$2,000 |
| Utilities | -$1,000 |
| Miscellaneous | - 500 |
| Subtotal expenses | -3,500 |
| Cash flow | $6,500 |
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