Pro-Forma Balance Sheet Template

A Pro-Forma Balance Sheet is a summary of a company’s projected status in the future depending on the financial statements at present. This is usually done after a planned transaction. A Pro-Forma Balance Sheet also helps in preparing financial statements. It is an important financial tool.

A Pro-Forma Balance Sheet is created based on a number of fixed suppositions. An organization’s business involvement in the past influences these suppositions. There can be any number of Pro-Forma Balance Sheets based on a specific business situation or a specific business procedure. The Pro-Forma Balance Sheet makes an examination of the fiscal induction in these business situations and procedures. A Pro-Forma Balance Sheet helps in assessing long term financial needs of an organization. A Pro-Forma Balance Sheet summarizes total assets, liabilities, and resources expected for the business. Resources are said to be those that a company can utilize for its operations. Liabilities are debts that a company may have incurred while doing business with credit holders. Equity is the amount of money that a business contributes or holds from the operations of the company.

A Pro-Forma Balance Sheet must have properly labeled figures. It should also have figures that deviate. It is a summary of transactions to be made in the future; for example, assurance of quality and capital investments. A Pro-Forma Balance Sheet contains the projected results from future statements. These projected transactions are taxes, net flow, and net revenue. If you want to apply a Pro-Forma Balance Sheet to the business, it should have all the necessary information. For example, it should have information regarding current assets, non-current assets, inventory, biological and financial assets, intangible assets, unearned revenue, equity, liabilities, and net balance of all the assets.

Lenders and investors use Pro-Forma Balance Sheets to structure compliance with debt. It is also used before a new company is launched so that investors get a good idea about the company and all the information regarding it.

The first section of a Pro Forma Balance Sheet should be for assets. List all the current assets of your company. This includes cash, net accounts receivable, inventory, temporary investment, and prepaid expenses. Now add all these. What you get is your total current assets.

The next section in a Pro Forma Balance Sheet should be the fixed assets section. This should include long term investment, land, the net depreciation of buildings, the net cost of plant and equipment, the net cost of furniture and fixtures. Once you add all this, you will get the amount for your total net fixed asset. Now add your total current affairs and your total net fixed assets. What you will get is the amount of you total assets.

Next, in a Pro-Forma Balance Sheet, list all your current liabilities and your long term liabilities. Your current liabilities include accounts payable, short term notes, current portion of long term notes, accruals and other payables. Long term liabilities may include mortgage and other liabilities. The next section in a Pro-Forma Balance Sheet is the shareholders equity section. This includes capital stock and retained earnings. Now add liabilities and equity. Then you have the amount for total liabilities and equity.

Here is a Pro-Forma Balance Sheet Template,

Pro-Forma Balance Sheet Template


Here is download link for the above mentioned Pro-Forma Balance Sheet Template,

Download Pro-Forma Balance Sheet Template

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