Assertion (A ): The Proforma income statement it is the projected cash accumulations minus projected cash disbursement.
Reason (R): Cash Flow refers to the movement of money in and out of a business during a specific period of time.
Answer & explanation
Correct answer: option 4
The proforma income statement is the projected net profit calculated from projected revenue minus projected costs and expenses. Basically, it summarizes all the profit data during the first year of operations of the new enterprises.