Analysis of pro forma financial statements
What are the actions to be taken when the analysis of pro forma financial statements shows positive trends or Negative trends?
Expert
While analyzing the pro forma statements, a manager tries to see signs of rising positive or negative conditions. And if the forecaster discovers positive signs, then they would advise that the present plans should be continued. If the forecaster discovers negative signs, they will suggest corrective action.
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From books of Aggarwal Bors, following information has been extracted: Rs. Sales 2,40,000 Variable costs 1,44,000 Fixed costs 26,000 Profit before tax 70,000 Rate of tax 40% Firm is proposing to buy the new plant that could generate extra annual profit of Rs. 10,000. The fixed cost of new plant is e
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