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The Utility of Pro Forma Income Statements

The Utility of Pro Forma Income Statements

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by Max Reiboldt, C.P.A., B.S. and John Reiboldt, BBA
Recent headlines surrounding the financial demise of the nation?s seventh largest company, Enron, and its subsequent entanglements with its accounting and consulting firm, Arthur Andersen, have placed a cloud of suspicion upon many reasonable business practices that otherwise are considered standard procedure. The pro forma income statement is one of those practices.