The final
Pro Forma Financial Statement that we need for Bob's Bicycles is the Statement of Cash Flows, shown in Figure 6.
Once your Q4 and annual column balance, your Cash Budget is done and you're ready to create the
Pro Forma Financial Statements.
Questions for
Pro Forma Financial Statements and Goodwill
A complete set of
pro forma financial statements includes sensitivity analysis, such as the impact of a change in gross margins due to unanticipated competitive pressures, and scenario analysis, such as the development of a new product or the acquisition of a competitor.
A Form 8-K will be filed in conjunction with the sale that includes
pro forma financial statements.
Devon will provide
pro forma financial statements for its upstream business in a separate Form 8-K filing in the near future.
DowDuPonts unaudited
pro forma financial statements are based on the historical consolidated financial statements of Dow and DuPont, adjusted for activities that are directly attributable to the merger transaction and are expected to have continuing impact, such as: purchase accounting; accounting policy alignment; elimination of the effect of events that are directly attributable to the merger agreement (e.g., one-time transaction costs); elimination of the impact of transactions between Dow and DuPont; and removal of the effect of remedy divestitures implemented as a condition of approval for the merger of Dow and DuPont1,2.
The vast majority of companies that do make such inclusions, by a nearly 5-to-1 margin, included just supplemental disclosures, rather than creating
pro forma financial statements. We observed a consistent approach to disclosure by companies within several of the same industries.
