fdfsdfsdl.docx - Financial Planning and Forecasting Pro Forma Financial Statements Financial statements projections and forecasting are very common in

fdfsdfsdl.docx - Financial Planning and Forecasting Pro...

This preview shows page 1 - 3 out of 7 pages.

Financial Planning and Forecasting Pro Forma Financial Statements Financial statements projections and forecasting are very common in corporate financial analysis. The reason is that it is very useful and important to forecast how much financing a company will require in future years. The projections are achieved by using historical sales, accounting data and assumptions on future sales and costs. These financial statements projections are known financial modeling as Pro Forma financial statements. Financial Statements Modeling This spreadsheet provides a template for financial statements forecasting. It requires simple financial statements inputs from the past 5 years and will automatically generate all the necessary Pro Forma Financial Statements projections outputs. The following diagram illustrates the process of using this template for financial statements forecasting. Most inputs are required in the first step. The rest of the four steps involve reviewing the outputs generated and entering values like short term interest rates to be assumed in the model. Financial Planning and Forecasting Spreadsheet Financial Statements Inputs The template requires inputs from the Income Statement and Balance Sheet from the past 5 years. Income Statement All inputs are marked with the "*" symbol. Financial statement input Common Financial statements Analysis Findings Financial Statements Forecast Financial Ratio Analysis
Image of page 1

Subscribe to view the full document.

The fields that are automatically calculated as shown in bold below. Revenues Sales* Cost and expenses: Cost of sales* Selling, general and administrative expense (SG&A)* Research and Development* Depreciation* Operating income = Sales - Cost and expenses Interest Interest expense* Interest income* Net Interest = Interest income - Interest expense Income before taxes = Operating income + Net Interest Income taxes* Net income = Income before taxes - Income taxes Common Shares*
Image of page 2
Image of page 3
  • Summer '19
  • CASAS

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Ask Expert Tutors You can ask You can ask ( soon) You can ask (will expire )
Answers in as fast as 15 minutes