A Pro Forma Income Statement Example may help understand some of the basic concepts in reviewing financial statements. The following examples are from particular Proforma Income Statement Example articles that were published in Business News Daily.
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By way of example, assume that a patient has acquired an acute case of cancer in his chest, neck, head, or both. The patient may be dying of cancer of all the body parts or only from a localized outbreak. If so, then the full-time job of evaluating a patient’s medical expenses for three years is impossible. To handle the situation properly, he would need to write an annual statement of his financial condition each year.
The first Pro Forma Income Statement Example presents the need for an accurate full-time income statement. The patient first starts by providing a complete and accurate record of his assets. The assets include his home, automobile, house loans, loans from his previous employer, grants from the government, as well as anything else that the patient owns.
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Next, the patient’s gross income comes into the picture. His gross income is his pay from his job. Next, the patient’s insurance coverage comes into the picture.
When you are beginning to plan a Financial Statement Example, you need to include the employee, as well as his spouse, children, parents, other children, or other adults who share the household. Next, you need to add the income from sources that have been in the household for at least three of the four months before this statement. The fourth month is the most important because that is the month in which the family reaches retirement age.
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The patient ends up having three options: he can include his medical expense reimbursement payments and his regular earnings period, or he can omit his medical expense payments. Either one works. The patient can claim an unreimbursed doctor’s service charge on the earnings period.
You can refer to this example to assist you in evaluating the place of the patient’s income in his assets, his health, his assets, his health, and his assets. Using the income statement example, you can better decide where your job is during the three years, and in what order. What a great idea!
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