lecturenotes-chapter9

lecturenotes-chapter9 - CHAPTER9

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Click to edit Master subtitle style 11 CHAPTER 9 Financial Planning and Forecasting Pro Forma Financial  Statements
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22 Overview of Financial Planning  n Strategic Plans n Identifies company’s overall corporate  purpose (mission),Scope, and statement of  objectives  n Operating Plans n Details implementation of strategic plan n Financial Plan
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Financial Plan n Project Financial Statements to analyze effect of  operating plan on projected profits and financial ratios n Determine funds needed to support five year plan n Forecast funds to be generated internally versus  externally and identify sources of external funds  within financial and market constraints n Establish performance based management  compensation system 33
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44 Pro-Forma Financial  Forecasting n Forecast sales n Project the assets needed to support  sales n Project internally generated funds n Project outside funds needed n Decide how to raise funds
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55 2009 Balance Sheet (Millions of $) sec. $     20 Accts. pay.  accrual s $   100 Accounts  rec. 24 0 Notes  payable       100 Inventorie s       240    Total  CL $   200    Total  CA $   500 L-T  debt 10 0 Common  stk 50 0 Net  fixed asset s Retaine d earning s       200    Total  assets $1,000    Total claims $1,000                               500
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2009 Income Statement (Millions of $) Sales $2,000.00 Less: COGS  (60%)   1,200.00            SGA costs       700.00    EBIT $   100.00 Interes t         10.00
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This note was uploaded on 10/25/2010 for the course FIN 332 taught by Professor J during the Fall '08 term at Towson.

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lecturenotes-chapter9 - CHAPTER9

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