D076 WGU FINANCE SKILLS FOR MANAGERS - U9
(PART 1)
Purpose of Financial Forecasting - Answer -Help managers make decisions on future
performance
Helps decision makers understand how actions taken today can impact the firm's future
performance
Financial Forecasting - 3 Basic Steps - Answer -1. Project the firms sales revenues and
expenses over the planning period
2. Estimate the levels of investment in current and fixed assets that are needed to
support the projected sales forecast.
3. Determine the firm's financing needs throughout the planning period that are required
to fund its assets.
sales forcast - Answer -The Key ingredient in a firm's planning process
It reflects: Past trend in sales that is expected to carry through into the new year
Calculate the forecasting sales given the following information: current sales = $500;
Growth rate = 10%; cost of goods sold = $300; net income = $200 - Answer -$550
If a company decides to issue shares in order to raise $2000, which of the following
accounts would increase in the pro-forma balance sheet? - Answer -Common Shares
One essential Component for a financial manager is the__________. - Answer -Ability
to plan and make necessary adjustments before actual events occur
The most comprehensive approach to financial forecasting is: - Answer -Using
proforma financial financial statement
Construction of a pro forma income statement is based on _____. - Answer -Sales
projections and the production plan
The influence of any anticipated events that might materially affect that trend
profit forecasting - Answer -is the projection of future earnings after all the projected
costs are subtracted from the projected sales.
Future earnings = Projected Costs - Projected Sales
Balance Sheet Forecasting - Answer -is typically done in conjunction with projecting in
come statement.
(PART 1)
Purpose of Financial Forecasting - Answer -Help managers make decisions on future
performance
Helps decision makers understand how actions taken today can impact the firm's future
performance
Financial Forecasting - 3 Basic Steps - Answer -1. Project the firms sales revenues and
expenses over the planning period
2. Estimate the levels of investment in current and fixed assets that are needed to
support the projected sales forecast.
3. Determine the firm's financing needs throughout the planning period that are required
to fund its assets.
sales forcast - Answer -The Key ingredient in a firm's planning process
It reflects: Past trend in sales that is expected to carry through into the new year
Calculate the forecasting sales given the following information: current sales = $500;
Growth rate = 10%; cost of goods sold = $300; net income = $200 - Answer -$550
If a company decides to issue shares in order to raise $2000, which of the following
accounts would increase in the pro-forma balance sheet? - Answer -Common Shares
One essential Component for a financial manager is the__________. - Answer -Ability
to plan and make necessary adjustments before actual events occur
The most comprehensive approach to financial forecasting is: - Answer -Using
proforma financial financial statement
Construction of a pro forma income statement is based on _____. - Answer -Sales
projections and the production plan
The influence of any anticipated events that might materially affect that trend
profit forecasting - Answer -is the projection of future earnings after all the projected
costs are subtracted from the projected sales.
Future earnings = Projected Costs - Projected Sales
Balance Sheet Forecasting - Answer -is typically done in conjunction with projecting in
come statement.
