Final answer:
The statement is True; the pro forma statement of cash flows' ending cash balance should match the pro forma balance sheet's cash balance as they both represent the company's financial status at the same point in time.
Step-by-step explanation:
The statement that the ending cash balance in the pro forma statement of cash flows is equal to the cash balance shown on the pro forma balance sheet is True. The pro forma statement of cash flows is a forecast that estimates a company's cash inflows and outflows over a certain period. It culminates in the ending cash balance. This ending balance should indeed match the cash balance displayed on the pro forma balance sheet because the balance sheet is a snapshot of a company's financial condition at a specific point in time, including its cash position.
The balance sheet's purpose is to illustrate a company's assets, liabilities, and equity at the end of an accounting period. Since cash is considered an asset, it must be consistent with the cash flows statement which reflects all cash movements during that period. Hence, both statements should theoretically show the same amount for cash at the period's end, ensuring that they are reconciled and correctly reflect the company's cash status.