FINANCIAL MANAGEMENT Financial Forecasting and Planning
Sep 11, 2014
FINANCIAL MANAGEMENT
Financial Forecasting and Planning
The Ingredients of a Financial Plan
A financial plan consists of several ingredients
We will focus on developing the pro formas and the cash budget
Expectations about the economic environment
A sales forecast
Pro forma (forecasted) financial statements
Asset requirements
Required new financing
Cash Budget
Forecasting: The % of Sales Method
Percent of sales method
We will focus on developing the pro formas and the cash budget
The most basic method of forecasting financial statements (income statements and balance sheets)
This method assumes that certain expenses, assets, and liabilities maintain a constant relationship to the level of sales
There are two inputs to this method:
A sales forecast (exogenous)The percentages which are assumed to be constant
Place major statement or section title here
Insert quote here…Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt
Text / image slide
Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt
Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt
Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt
Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt
Graphic slide
Lorem ipsum dolor sit amet
Lorem ipsum dolor sit amet
Consectetur adipisicing elit
Sed do eiusmod tempor incididunt
Lorem ipsum
Lorem ipsum
Lorem ipsum
Lorem ipsum