{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

FINANCIAL FORCAST CHECKPOINT

FINANCIAL FORCAST CHECKPOINT - .Basedontheestimated...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Financial forecast is necessary to the calculated growth of the company. Based on the estimated  statements, the company is able to guesstimate its future level of Receivables, inventory, payables, as  well as its expected profits and borrowing necessities. The financial officer is able to track actual  events against the plan and make necessary adjustments. The statements are often required by bankers  and other lenders as a guide for the future.  The main reason for the cash budget is to allow the  company to anticipate the need for outside funding at the end of each month.  A rapidly growing company might observe a major increase in accounts receivable, inventory, plant  and equipment that cannot be financed in the normal course of business.   Financial forecasting can help you predicting the way a company or institute will do money-wise in  the future. Most business decisions transpire months prior to the actual event taken place, being able 
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

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