Credit Hours: 2
“The financial analysis of a company is a process of selecting, evaluating, and interpreting financial data, along with other pertinent information, in order to formulate an assessment of the company’s present and future financial condition and performance.” (Source: CFA). The pro forma statement is prepared based on assumed events and transactions that have not yet occurred. They are similar to historical financial statements, but they focus on the future rather than the past. This module demonstrates the creation and use of pro forma financial statements when a firm is considering a step that could have a significant financial impact.