How much financing will be needed to open the doors of the business in July 2008? Five years of pro forma balance sheet and income statement data must be prepared to determine if additional financing is needed, and if so, how much. Steven's finance background tells him that the estimated financing needed each year will be an accounting plug gure to ensure that the balance sheet balances. If projected assets exceed liabilities and equity, the difference will be the bank's borrowing needs. If liabilities and equity exceed projected assets purchases, these funds will be used to payoff debt or increase cash or marketable securities. Because this is a start-up business, it is even mote irnprtant to identify what the loan proceeds will be used for, what the primary source of repayment is, and when the total loan proceeds will be repaid. Using the pro forma projections, the primary source of repayment and when the loan will be repaid can be determined