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. 16 19PAGETable Caption 2000 PRO FORMA(DOLLARS IN MILLIONS) s Revenues : Commercial services. .............. Consumer and small business services.... .................... Directory services.. ..............

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What is pro forma financial statements?

Pro forma financial statements are financial reports that project the future financial performance of a company based on certain assumptions and hypothetical scenarios. They are often used for internal planning, decision-making, or to show potential investors the expected outcomes of a business initiative.

Who is required to file pro forma financial statements?

Companies that are publicly traded or seeking to raise capital may be required to file pro forma financial statements when they release earnings or undertake significant transactions, such as mergers or acquisitions.

How to fill out pro forma financial statements?

To fill out pro forma financial statements, companies typically start with their actual financial statements and then adjust line items based on projected revenues, expenses, and other assumptions relevant to future events, ensuring to disclose the basis and rationale for these adjustments.

What is the purpose of pro forma financial statements?

The purpose of pro forma financial statements is to provide a clearer picture of a company's anticipated performance under specific conditions, helping stakeholders evaluate the impact of potential changes in business operations or economic conditions.

What information must be reported on pro forma financial statements?

Pro forma financial statements must report key financial metrics such as revenues, expenses, operating income, net income, and any adjustments made, along with the underlying assumptions and rationale for those adjustments.

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