#Statement of cash flows proforma pro

#Statement of cash flows proforma pro

I have posted a simple pro forma statement for a hypothetical natural gas power plant, in Microsoft Excel format. (It is possible to put together a historical pro forma for an individual energy project, but we'll focus on the pro forma for evaluation of potential energy projects.)Īs we go through the various parts of the pro forma, it will be useful to refer to a numerical example, to keep things a little less abstract.

Individual energy projects are often evaluated using P&L and Cash Flow statements that jointly are known as the 'pro forma.' Unlike the P&L and Cash Flow statements for a company, which should represent actual historical data, the pro forma represents the analyst's evaluation of the financial worthiness of a potential energy project. are public information, so you should be able to easily find them, as long as the company is required to file one. This is not to say that all companies massage the numbers in their annual shareholder reports, only that you may find differences between the annual report and the 10K, if you look hard enough. So, the 10K is the real deal as far as determining the financial position of a company. Some companies publish similar information in their annual reports to shareholders, but these annual reports are not subject to any sort of regulatory scrutiny, whereas 10K filings can be audited if necessary. companies, at least those that are publicly traded, are laid out in a mandatory quarterly filing to the Securities and Exchange Commission called the Form 10K. The P&L and cash flow statements for U.S. Either way, they have roughly the same format.Īt this point, please read 'A Primer on Financial Statements.' The first big table in the article lays out the structure of the P&L statement pretty nicely, at least up until the row that is labeled 'Net Income.' The rows below Net Income pertain to calculating financial metrics for valuation of specific companies. The last two financial statements - the P&L and the cash flow statement - are used in two ways, depending on whether the entity under analysis is a company or a specific project. The Balance Sheet that was discussed earlier in this lesson provides a snapshot in time of the financial health of a firm or the valuation (again, at a snapshot in time) of a specific investment project. The Pro Forma Income (P&L) and Cash Flow Statements