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What is the difference between a cash budget and a pro forma balance sheet?

April 26, 2017balance sheet budget cash Forma Pro

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What is the difference between a cash budget and a pro forma balance sheet?

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Basically the pro forma income statement deals with assumptions and projected numbers (such as projected sales/revenue) where as the cash budget does not deal with assumptions such as projected sales/revenue. The pro forma income statement, in the end gives you projected profit, whereas the cash budget sheet in the end informs you as to wether or not your business will be lacking cash to operate.