FIN2004 JAN17 Tutorial 9 L-T Financial Planning Worked Solutions Rev.pdf - Tutorial 9 Long-Term Financial Planning Conducted by Mr Chong Lock Kuah CFA 0

FIN2004 JAN17 Tutorial 9 L-T Financial Planning Worked Solutions Rev.pdf

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0 Tutorial 9 : Long-Term Financial Planning Conducted by : Mr Chong Lock Kuah, CFA
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1 Revisit some important concepts Steps in financial forecasting are 1. Forecast sales 2. Project the assets needed to support sales 3. Project internally generated funds 4. Project external funds needed 5. Decide how to raise funds
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2 Cont’d The sales forecast is the most crucial element in the financial plan. Some methods of obtaining sales forecasts: Sales force estimates Customer surveys Time series methods Regression models After obtaining the forecasted sales, we can then use the following methods to arrive at additional funds needed (AFN) or external funds needed (EFN): Percentage of Sales Approach; or AFN Equation Method
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