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Financial Forecasting

In: Business and Management

Submitted By konicalim
Words 293
Pages 2
6t8t2011

Learning Objectives
At the end of this chapter, you should be able to:

a Explain the purpose and importance of financial a a a a a forecasting ldentify and explain the various forecasting techniques Prepare various budgets for a particular scenario in a firm Prepare proforma financial statements Provide suggestions as to the alternatives available to a firm when it faces cash shortfalls Explain the limitation of the percent of sales forecast method

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Introduction an integral part of any planning process that is undertaken by all firms. Firms must make decisions today that will affect the firm in the future.
It means thinking in advance about the future, and being able to devise alternative actions that can be implemented. It represents the firm's ability to respond to events that present itself in the future.

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