Three models for sales forecasting: - ANS-Extrapolate trends models
Causal fashions
Business models
3 objectives of the sales forecast: - ANS-1) Reasonably correct
2) Unbiased (now not consistently too high or too low)
3) A forecast that yields different important insights into the corporation
Activity/Efficiency ratios measure what? - ANS-How properly the corporation utilizes and
manages assets
AFN - ANS-A) Required boom in assets
-
B) Increase in RE
-
C) Increase in spontaneous liabilities
Basic Financial Analysis Tools - ANS-Common size financial statements
Financial ratios
Business fashions - ANS-A business version is a version of the way a organisation generates
sales.
1) Identifies key drivers
2) Preferred forecasting technique, however no longer as correct
Can finance may be used successfully in aggressive competition? - ANS-Yes.
Causal models - ANS-
Common Size Financial Statements - ANS-- Statement values are transformed into possibilities
- Percentages make it less complicated to make comparisons and spot tendencies
Extrapolate traits models - ANS-CAGR
Time regression
Facts approximately peer corporations and industries: - ANS-Some industries are very various
Many firms perform in more than one industries
Some firms clearly do not have peers (conglomerates)