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Pro Forma Cash Flow Statement: A Budgeting Guide for Entrepreneurial Success

Understand the significance of Pro Forma Cash Flow Statements in managing finances for entrepreneurs. Learn how to create sales forecasts, estimate expenses, control costs, and develop a Pro Forma Balance Sheet effectively.

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Pro Forma Cash Flow Statement: A Budgeting Guide for Entrepreneurial Success

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  1. Entrepreneurship Mr. Bernstein Managing Your Finances, pp 457-465 June 2, 2014

  2. EntrepreneurshipMr. Bernstein Pro Forma Cash Flow Statement Becomes a budget tool: Must have a sales forecast Must include estimates of all expenses Comparison with results highlights areas where changes may need to be made Must include entries for capital expenses Helpful in developing Pro Forma Balance Sheet

  3. EntrepreneurshipMr. Bernstein Cash Flow Statement and Budgeting Controlling costs: Variable vs. Fixed Expenses AKA “marginal” and “sunk” costs Airlines: Example of High Fixed Expenses Large upfront costs, pure profit after reaching breakeven point Farmer’s Market: Example of High Variable Expenses Low upfront costs, profit from markup on each item What type of expenses are favored by Startup Entrepreneurs?

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