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Chapter 4 Financial Forecasting and Planning - Coggle Diagram

- - - - Cash planning- involves preparation of the firm’s cash budget
      - Profit planning – is usually done by means of pro-forma financial statements
- - - - Determine the sales growths (in %)
      - Determine the spontaneous item-adjust the item by a factor of 1 + sales growth(%)
      - Project the pro-forma balance sheet values- all non spontaneous item remained unchanged as per balance sheet value
      - Calculate the new level (projected) of retained earnings
      - Determine the additional fund needed (AFN).HOW?