Sophia Principle of Finance Milestone Study Guide Revisions 2

Sophia Principles of Finance Unit 1 Challenge 4 1 — Financial Forecasting The process of applying sales goals to production in order to maximize efficiency is __________. capacity planning 2 — Forecasting the Income Statement Robyn wants to prepare a pro forma income statement for her business. What must she predict before forecasting her expenses? Sales 3 — Forecasting the Balance Sheet The pro forma balance sheet is prepared to ensure that the company's projected performance is in line with its __________. strategic plan 4 — Building a Cash Budget Select a reason why cash flow forecasting is important to a company's success. It helps a company avoid running out of cash to make payments with. 5 — Analyzing Forecasts What is a question that should be asked about accounts