04 Forecasting - handout

04 Forecasting - handout - Ch. 4: Financial Forecasting,...

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Ch. 4: Financial Forecasting, Ch. 4: Financial Forecasting, Planning and Budgeting Planning and Budgeting
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Mind Map Why?: Financial statements are backwards-looking. As analysts/managers, we are really interested in what will happen in the future. Hence, we want to be able to make fundamental assumptions about the future progress of the firm and then forecast future results. Our goal is to understand the possible implications of today’s decisions on tomorrow’s performance .
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Mind Map Learning objective: Create pro forma income statements and balance sheets using percent of sales forecasting Identify the key variables in the forecasting process and the key limitations Understand the key interactions in the planning process Estimate a cash budget in good form
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Mind Map Key words/concepts: Percent of sales forecasting Discretionary financing need (DFN) Spontaneous and non-spontaneous accounts RE forecasting Capacity, payout ratio, plowback ratio Sustainable growth rate and the duPont equation Cash budgets
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Financial Forecasting 1) Project sales revenues and expenses.
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This note was uploaded on 02/17/2012 for the course FINANCE 301 taught by Professor Jimbrau during the Winter '12 term at BYU.

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04 Forecasting - handout - Ch. 4: Financial Forecasting,...

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