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Financial Statements |
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Financial statements are informational pictures of the financial status of a particular business firm for a certain period of time. Generally, any investor or creditor willing to assume capital risk for the franchisor will want to analyze the financial statements. Three key financial statements are used by a financial decision maker: the income statement, the balance sheet, and the cash flow statement. The franchised firm can estimate financial statements for periods into the future. These financial statements are called pro forma statements. Pro forma financial statements are financial planning documents for the business to use as it tries to expand into new products or markets and/or deepen its market penetration. All the examples of projected statements are based on the same company for the same year. |
