

This part of the pro forma statement will identify the net effect on cash if the proposed business change is implemented. Use the revenue projections from Step 1 and the total costs found in Step 2 to create the first part of your pro format, This part will project your future net income (NI).

Costs include lease payments, utilities, employee pay, insurance, licenses, permits, materials, and taxes. Liabilities include loans and lines of credit.

Calculate the estimated revenue projections for your business.
