Final answer:
The question involves creating a Pro Forma Cash Flow Statement to project a company's ending cash balance using provided balance sheet data in a t-account format. The process includes adjustments for non-cash expenses, working capital changes, and capital expenditures to forecast the cash movements accurately.
Step-by-step explanation:
The subject of this question is the creation of a Pro Forma Cash Flow Statement using t-account and balance sheet information to project the ending cash balance for a business. A Pro Forma Cash Flow Statement is a financial document that forecasts a company's cash inflows and outflows over a specific period.
The balance sheets provided, presumably in a t-account format, will allow us to identify changes in assets, liabilities, and equity, which are critical to preparing a cash flow statement. Although the actual pro forma statements are not provided in the question, typically, one would need to adjust net income for any non-cash items, consider changes in working capital (like accounts receivable and accounts payable), and factor in any capital expenditures or financing activities.
To create a Pro Forma Cash Flow Statement, we would start with net income, add back any non-cash expenses, make adjustments for changes in working capital, and then subtract any capital expenditures. The result would determine the projected ending cash balance. It involves understanding and applying key accounting principles and thoughtful analysis of the given financial data.