FINANCIAL FORECASTS

IE code:
DF2-105-I
Language:   English
also available in Spanish
Format:  
PDF
also available in Multimedia
Nr. Of Pages:
10
Academic Area:
Type of publication:
Technical Note

Description

This tutorial gives a step-by-step look at how a company’s future plans are quantified through financial forecasts and explains the purpose and importance of forecasts. It emphasizes that although many people are overwhelmed when it comes to financial forecasts, it is something that must be dealt with and is a tool that financial professionals will never stop using. It explains how students must look at the company’s history and then create the balance sheet and P&L accounts for future years. To do so, it provides past financial results for Ártica and describes what has been happening with its sales, operating costs, expenses, etc. in recent years. It walks students through how to analyze the company’s accounts and then provides steps so that students can create a financial forecast. It demonstrates how you can create an optimistic forecast but also how you must imagine alternatives where things do not go well.