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Financial Forecasting and Planning, IMPORTANT, Point to remember - Coggle…

- - - - Profit planning – is usually done by means of pro-forma financial statements
      - Cash planning- involves preparation of the firm’s cash budget
    - - Rent payments
        
        Wages and salaries
        
        Tax payment
        
        Fixed asset (payment)
        
        Interest payment
        
        Dividend payment
        
        Loan
        
        Renovation
        
        Other cash disbursement
- - - - Steps in preparing Cash Budget
        
        Determine the amount and timing of cash receipts
        
        Prepare the cash reconciliation accounts
        
        Determine the net cash flow
        
        Determine the amount and timing of cash disbursement
- - - - Project’s the firm sales revenues and expenses
        
        Estimate the levels of investment in current and fixed assets that are necessary to support the projected sales
        
        Determine the firm's financing needs throughout the planning period