LEARNING OBJECTIVES
1 To understand the role of budgets in preparing pro forma statements.
2 To understand why positive profits can still result in a negative cash flow.
3 To learn how to prepare monthly pro forma cash flow, income, balance sheet, and sources and applications of funds statements for the first year of operation.
4 To explain the application and calculation of the break-even point for the new venture.
5 To illustrate the alternative software packages that can be used for preparing financial statements.