Description
FIN 515 Week 6 DQ 1
Financial Planning & Forecasting
Illustrate how management focus on forecasting, planning, and business strategy can create wealth for a company in your industry.
For this discussion thread, let’s first focus on a company’s sales forecast. How does a company come up with a sales forecast?
Do you anticipate that it would be easier to forecast sales for a consumer durables firm or for a computer software firm?
Let’s now comment on financial statement forecasting via the percent of sales method. What’s the first step in that process? Please explain.
What’s the second step in that process?
Regarding the percent of sales method! What’s the third step in that process? Please explain.
What’s the fourth step in that process? Please explain.
What are the three conditions when it’s not appropriate to assume constant ratios and the same growth rates in the forecasted financial statement method and the AFN formula?
