Ch. 4: Financial Forecasting, Planning, and Budgeting ◎2002, Prentice Hall. Inc
Ch. 4: Financial Forecasting, Planning, and Budgeting © 2002, Prentice Hall, Inc
Financial Forecasting 1)Project sales revenues and expenses
Financial Forecasting • 1) Project sales revenues and expenses
Financial Forecasting 1)Project sales revenues and expenses。 2) Estimate current assets and fixed assets necessary to support projected sales
Financial Forecasting • 1) Project sales revenues and expenses. • 2) Estimate current assets and fixed assets necessary to support projected sales
Financial Forecasting 1)Project sales revenues and expenses。 2) Estimate current assets and fixed assets necessary to support projected sales Percent of sales forecast
Financial Forecasting • 1) Project sales revenues and expenses. • 2) Estimate current assets and fixed assets necessary to support projected sales. – Percent of sales forecast
Percent of sales Method Suppose this years sales will total S32 million Next year, we forecast sales of S40 million Net income should be 5%o of sales Dividends should be 50%o of earnings
Percent of Sales Method • Suppose this year’s sales will total $32 million. • Next year, we forecast sales of $40 million. • Net income should be 5% of sales. • Dividends should be 50% of earnings