0
The financial forecast or financial plan is often drawn up by clients to present a favourable cash flow situation, and might not be based on the realities of the situation that the business finds itself in. It is an annual projection of income and expenses.
Wiki User
∙ 11y ago
Add your answer:
Earn +20 pts
Who would be interested in a financial forecast of a company?
who would be interested in a financial forecast of a company
Where can one find a forecast for mortgage rates?
One can find some mortgae forecast reviews online through financial companies who have financial advisors. One should bear in mind that a forecast remains speculative.
Differentiate between a cash flow forecast and sales forecast.?
Sales forecast is simply a predication of the volume of units or financial sales expected (normally in a year) A manufacturing company will forecast both unit and financial expectant as they will use the information to establish increases/decreases in raw materials, labour and plan etc. Cash flow is looking at the money in and out of the business, where its from/ going to and financial risk of a minus financial event where out going exceeds incoming.
What is the purpose of financial?
The Purpose of Financial Markets
What are the functions of budget?
In summary, the purpose of budgeting is to: 1. Provide a forecast of revenues and expenditures i.e. construct a model of how our business might perform financially speaking if certain strategies, events and plans are carried out. 2. Enable the actual financial operation of the business to be measured against the forecast.
What are function of budget?
In summary, the purpose of budgeting is to: 1. Provide a forecast of revenues and expenditures i.e. construct a model of how our business might perform financially speaking if certain strategies, events and plans are carried out. 2. Enable the actual financial operation of the business to be measured against the forecast.
Difference between budget and forecast with examples?
A forecast is a statement of the expected outcome of a given set of events. It follows then that a financial forecast is a statement of the expected outcome in financial terms of a given set of (assumed) events. A budget is a financial forecast based on a plan set by management. Thus, a business may prepare a budget that forecasts a revenue of, say, USD 10 million and a net income of USD 1 million, if all its strategies and actions happened as planned, and assumptions made (such as interest rate) occur. The budget is used by the management to control the business going forward. On the other hand, a financial forecast that is not a budget may be produced by the business for a different purpose, e.g. to provide a bank creditor with an idea of how the business will perform going forward. Such forecast can be varied depending on how optimistic or conservative the maker wants it to be. Thus, for the same business in the example above, a conservative forecast may be prepared for an investor that indicates a revenue of USD 9 million and a net income of USD 750,000.
Which type of software use to prepare a budget forecast?
A financial package or a spreadsheet.
What is the most important ingredient in developing a firm's financial plan?
A forecast of sales revenues.
What is the point of cashflow forecast?
A cashflow forecast is very important in financial management. It plans the future cash requirements so the company can avoid going into a crisis of liquidity.
What is the primary purpose of the mean absolute deviation in forcasting?
to measure forecast accuracy.
What is the process that periodically checks actual revenues and expenses against forecast values?
Financial Controlling
