Financial planning and forecasting Financial Management Financial planning and forecasting

Readings Financial forecasting https://onstrategyhq.com/resources/how-to- perform-financial-forecasting/ https://www.entrepreneur.com/article/76418

Financial Forecasting Income statement Balance sheet Cash flow statement (beyond scope of this course)

Financial Forecasting Assumptions: Income Statement Sales growth Relationships to sales Cost of goods sold Operating expenses Interest based on debt balance and interest rates Taxes based on tax rates

Financial Forecasting Assumptions: Balance Sheet Relationships to sales Working capital Capital expenditures (based on capacity level) Company policy New debt New equity Dividends

Financial Forecasting Example

Financial Forecasting Example

Financial Forecasting Example