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Financial planning and forecasting

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Presentation on theme: "Financial planning and forecasting"— Presentation transcript:

1 Financial planning and forecasting
Financial Management Financial planning and forecasting

2 Readings Financial forecasting
perform-financial-forecasting/

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

4 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

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

6 Financial Forecasting Example

7 Financial Forecasting Example

8 Financial Forecasting Example

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