Discussion: Financial Modeling

Discussion: Financial Modeling

The discussion question from Module Three aligns nicely with the concepts in Module Four. Thus, we will dig a little deeper into the modeling process using pro forma statements as a backdrop. The integrity of reporting pro forma earnings is just as important as the information that is obtained from the analysis.

Why is pro forma earnings reporting coming under scrutiny?
How can you mitigate the “bad press” associated with using pro forma data in valuing an organization? (Do not simply report what the article is sharing but instead juxtapose the findings with how you will mitigate the use of this data in your own analysis).
The attachment is the paper you need and do not make plagiarism. I would like to check it and using turnitin.

Solution Preview

Pro forma Earnings Reporting
Managers have a role in reporting alternative organizational earnings during their periodical press releases. However, there is no universal rule governing the reporting alternative pro forma earnings as they are hypothetical to the prevailing conditions for the company. Items that companies include in calculating their pro forma earnings vary depending on what accurately represents their performance.

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