Pro Forma Statements are “financial statements that a company prepares to consider the effects of potential activity” (Pro Forma Statement, 2013). It is a financial statement showing the forecast or projected operating results and balance sheet, as in pro forma income statements, balance sheets, and statements of cash flows (Pro Forma Statement, 2013).XYZ Company, Inc. is looking to expand their organization in the next five years. The following paper will review XYZ Company’s five-year financial plan to expand their organization. The pro forma income statement for XYZ Company, Inc. is a five-year projection that accounts for a 10% increase in gross sales each of the five-years. The projections for XYZ Company, Inc. show that the break-even point will occur in 2013 when net sales equal $1,747,698, gross profits equal $697,428, and total operating expenses equal $285,850. In 2014 the break-even point will equal $767,170.80 gross profits,$1,922,467.80 net sales, and $288,370.17 total operating expenses. In 2016 equal$2,326,186.04 net sales, $914,822.99 gross sales, and $349,451.05 total operating expense. In 2018 net sales will equal $5,140,871.14, gross sales equal $205,120,758.49and total operating expenses equal $430,386.70.In order for XYZ Company, Inc. to expand they need to increase current assets by$10,000. This is to increase the likelihood of needed finance. The expansion is costing$250,000 meaning the organization will need to utilize $175,000 in other forms of equity to collateral the balance. XYZ Company, Inc. does not have a parent company or partner to assist in funding or providing a loan so XYZ Company will use a small business loan through a bank. Financial information will be used to see where deficits lie and to correct those deficits. For example, if deficits were showing more products being purchased than sold this would need to be corrected. A