Overview
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Learn how to create forecasted financial statements for your company, including forecasted income statements, forecasted balance sheets, and forecasted statements of cash flow.
Syllabus
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Introduction
- Projecting the financial future
- What you should know
- Use the past to understand the future
- Keys to running a business
- Financial forecasts and loans
- Financial forecasts and investment decisions
- Use financial forecasts to understand new information
- IBM and the famously bad sales forecast
- Combine historical trends with current plans
- Incorporate seasonal patterns and recent developments
- The costs of being wrong
- Home Depot 1985: Three weeks to live
- The impacts of natural changes
- The impacts of long-term planning decisions
- The impacts of financing choices
- The Gap and predictable change
- Forecasting sales-based expenses
- Fixed costs and variable costs
- Forecasting interest and income taxes
- The power of the accounting equation
- Identifying the missing number
- Easy "plugs": Cash, investments, paid-in capital
- Realistic but challenging "plug": Loans
- The Home Depot story revisited
- How to deduce cash flows
- Forecasting operating cash flow
- Forecasting investing cash flow
- Financing cash flow
- Dynamic modeling
