Proforma balance sheets

Proforma balance sheets

Proforma balance sheets are drawn for existing concerns going for expansions as well as for new projects. However in the case of existing concerns going for expansion the balance sheets for the past three years are also analysed and compared, with the projections. The projected balance sheets can be drawn for the cash flow estimates and profitability projections. Various ratios are derived from the balance sheets and inferences drawn therefrom.