budget-sec13-Forecasting_6

budget-sec13-Forecasting_6 - Forecasting: William J. Ward,...

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Forecasting : William J. Ward, Jr., MBA ± William J. Ward, Jr., MBA Johns Hopkins University 2 ± A prediction of the future ± Historical data, current operating facts, and other information 3 ± A prediction of the future ± Historical data, current operating facts, and other information ± Sources of information ± Upwardly directed 4 ± A prediction of the future ± Historical data, current operating facts, and other information ± Sources of information ± Upwardly directed ± Accuracy is key ± Communications tool ± List assumptions 5 One Approach to Forecasting Description Fixed Variable Total Year to Date Expense $57,000 $40,000 $97,000 Adjustments Add back "One Time" credits 4,000 4,000 Deduct "one Time" expenses (1,000) (500) (1,500) Adjusted Total $60,000 $39,500 $99,500 Annualization Divide by days/months/etc. 6 months Divide by volume 395 Multiply by days/months/etc. 12 months Multiply by volume 1,000 Annualized Amounts $120,000 $100,000 $220,000 Adjustments Add back "One Time" expenses 1,000 500 1,500 Deduct "One Time" credits (4,000) (4,000) Events thru year end (+/-) 25,000 25,000 Expense Forecast as of 12/31/XX $142,000 $100,500 $242,500
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budget-sec13-Forecasting_6 - Forecasting: William J. Ward,...

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