Continued... Additional financing needed:the difference between the total financing needed and the internal financing provided Additional Financing [A/S(△S)-CL/S(△S)」EAT-D」 Needed External 渊外经价货多方居 YO年NEB证事0000
Continued Continued… Additional financing needed: the difference between the total financing needed and the internal financing provided Additional Financing Needed = External [ A/S(ΔS) - CL/S(ΔS) ] - [ EAT – D ]
Continued... O Cash budgeting A financial plan Projects receipts and disbursements over future periods of time o Receipts on credit sales lag projected sales o Payments for purchases depend on How much the purchase precedes the sale Credit terms o Other scheduled receipts and disbursements 渊补楂价贸多方号 YO年N0事0E000
Continued Continued… zCash budgeting – A financial plan – Projects receipts and disbursements over future periods of time o Receipts on credit sales lag projected sales o Payments for purchases depend on 9 How much the purchase precedes the sale 9 Credit terms o Other scheduled receipts and disbursements
Continued... OPro-Forma Statement of Cash Flows Measure the increases and decreases in cash and cash equivalents o CF's expected from operations o CF's expected from investing activities o CF's expected from financing activities Add cash and cash equivalents at the beginning of year expected cash and cash equivalents end of year 渊外经价货多方是 YO年NEB证事0000
Continued Continued… zPro-Forma Statement of Cash Flows – Measure the increases and ( decreases ) in cash and cash equivalents oCF’s expected from operations oCF’s expected from investing activities oCF’s expected from financing activities – Add cash and cash equivalents at the beginning of year = expected cash and cash equivalents end of year
Continued... OComputerized Forecasting and Financial Planning Deterministic model Uses single-value forecasts of each financial variable Probabilistic models Utilize probability distributions for input data Optimization models Choose the optimal levels of some variables 剥外经份贫多方号 YO年N0事0E000
Continued Continued… zComputerized Forecasting and Financial Planning – Deterministic model Uses single-value forecasts of each financial variable – Probabilistic models Utilize probability distributions for input data – Optimization models Choose the optimal levels of some variables
Continued... O Forecasting With Financial Ratios Forecasting bankruptcy with discriminant analysis(5 ratios) o Net working capital/Total assets o Retained earnings/Total assets o EBIT/Total assets o Market value equity/Book value total debt o Sales/Total assets 渊外经价货多方是 YO年NEB证事00003
Continued Continued… zForecasting With Financial Ratios – Forecasting bankruptcy with discriminant analysis(5 ratios) o Net working capital/ Total assets o Retained earnings/ Total assets o EBIT/ Total assets o Market value equity/ Book value total debt o Sales/ Total assets