Financial statements are vital to any organization, regardless of size or method of ownership. An organization's financial statements include the balance sheet, income statement, statement of stockholders' equity, and statement of cash flows. The reports provided by the budget are necessary for internal and external use. Reports for analysis and comparison measure the performance of an organization (Holt, 2014, p. 22) and are prepared using information from financial reports. Financial analysis judges an organization's history and gathers information to project its future (Holt, 2014, p. 25). To examine the ongoing profitability of an organization, pro forma financial statements are prepared. Projecting Earnings and Cash Flow Pro forma financial statements forecast or project financial statements for the future (Ross, Westerfield, & Jordan, Essentials of Corporate Finance, 2011, p. 271). The earnings and cash flow projection shows future expectations. These statements are essential for evaluations by internal and external groups for use in planning, management, investment and financing decisions. Financial institutions use pro forma statements for an organization's loan consideration. Pro forma statements predict whether an organization can collect loan payments. Pro forma statements provide information about the likelihood that the organization will remain solvent. Qualitative analysis, quantitative analysis and sensitivity analysis are the three steps in developing pro forma financial statements. Qualitative analysis measures the industry as a whole and uses the same process to analyze an organization. Robert Morris Associates, Standard & Poor's, Value Line and others provide industry surveys... middle of paper... and unbiased analysis. II Timothy 6:9 (NIV) tells us that the desire for wealth leads to temptation, and these harmful desires ruin men. The numbers presented by a manager must be unbiased and as accurate as possible. The desire for money and success should not overshadow honesty and truth when preparing pro forma financial statements. Works Cited Fackler, M. (ed.). (2006). 500 questions and answers from the Bible. Uhrichsville, Ohio: Barbour Publishing, Inc. Holt, R. N. (2014). Understanding corporate finance (fifth ed.). Ivy Software.Holy Bible - New International Version. (1986). Zondervan. Ingram, C. (2007). Good to Great in the Eyes of God. Grand Rapids, MI: Baker Books. Ross, S. A., Westerfield, R. W., & Jordan, B. D. (2011). Essentials of corporate finance (seventh ed.). New York, NY: McGraw-Hill/Irwin.Warren, C.S. (2012). Accounting. Mason, OH: Cengage Learning.