1 / 9

Topic5 Financial planning- financial statement as the basis for forecasts

Topic5 Financial planning- financial statement as the basis for forecasts. Content Revision of financial statement Financial statement as the basis for forecasting Assumption needed for forecast statement Using forecasts to help in decision making

kawena
Download Presentation

Topic5 Financial planning- financial statement as the basis for forecasts

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Topic5Financial planning- financial statement as the basis for forecasts

  2. Content • Revision of financial statement • Financial statement as the basis for forecasting • Assumption needed for forecast statement • Using forecasts to help in decision making • Illustration of the use of a spreadsheet for planning

  3. Revision of financial • The balance sheet -study guide p142 • The profit and loss statement -study guide p143 • The cash flow statement -study guide p144

  4. Financial statement as the basis for forecasting • Example 5.1 • Activity 5.1

  5. Assumption needed for forecast statement • Relating to the profit and loss account • Sales –p149 • Cost of sales and associated expenses–p149 • activity 5.2 • Depreciation and related costs –p150 • Activity 5.3, 5.4, 5.5, • Appropriations of profits –p152

  6. Assumption needed for forecast statement • Relating to the balance sheet–p152 • Fixed assets • Working capital • Loan • Capital

  7. Assumption needed for forecast statement • Relating to the cash flow statement • Profit • Depreciation adjustments/disposal of fixed assets • Fixed asset acquisitions • Levels of working capital • Loan raised and repaid • Taxation and dividends • Capital raised and redeemed • Activity 5.6

  8. Using forecasts to help in decision making • Sensitivity analysis • Activity 5.6 • Activity 5.7 • Activity 5.8

  9. Illustration of the use of a spreadsheet for planning • Appendix to topic 5 • Example 5A.1 • Activity 5A.1

More Related