Title: Describe the purpose of a financial model (pro forma).
Course: Small Business Marketing (12161) > Section: Explaining the Role of Finance in Business

Description should include how a financial model

- outlines expected expenses and revenues of a business over a certain period
- serves as a tool for
  - planning and budgeting
  - decision-making

- fundraising
- risk assessment
- performance tracking.

Pro forma includes

- income statements
- balance sheets
- cash-flow statements.

Process/Skill Questions:

- What is the primary purpose of pro forma financial statements?
- Who would use proforma financial statements of a business?
- What distinguishes pro forma financial statements from traditional financial statements?
- Why are pro forma financial statements important for startups?
- How do pro forma financial statements interact with budgeting processes?