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    Business
  3. Study Set
    Financial Statement Analysis
  4. Exam
    Exam 9: Prospective Analysis
  5. Question
    You Construct a Pro Forma Income Statement and Balance Sheet
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You Construct a Pro Forma Income Statement and Balance Sheet

Question 3

Question 3

True/False

You construct a pro forma income statement and balance sheet in order to estimate the amount a company needs to borrow in the forthcoming period. If assets are greater than liabilities plus equity, this means the company needs to borrow money.

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