FINANCIAL FORCAST - .Basedontheestimated statements,,inventory,payables,as .

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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 
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This note was uploaded on 01/27/2010 for the course FIN 200 taught by Professor Bresett during the Spring '10 term at University of Arizona- Tucson.

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FINANCIAL FORCAST - .Basedontheestimated statements,,inventory,payables,as .

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