Checkpoint forecasting

Satisfactory Essays
Financial Forecasting

Beverly Clarkson

March 7, 2014

FIN/200 Week 3 Checkpoint

Financial Forecasting Checkpoint

Financial forecasting is one of the most important developing series of projecting a financial statement. With a projection statement, a firm can estimate the inventory to the account receivable to the account payable. With the figures they can see the profits the firm could make.
A company that is starting out having a projection of the sales for the first quarter, using the start up cash balance sheet, with projected sales and income will give them a budget plan. Knowing the operating and purchase cost is important for a new company. Having a projection plan as a new company would help if financing is needed from another source.
Business that is family owned and operated must have a projection on the sales, operating cost. They too must have production plan, sales projection, and a cash balance sheet. Lenders requirement is to have a projection of the business that you have. A financial forecasting statement is the statement that shows all finances of the business, with account receivable, account payable and cash balance.
Companies that has been in business for a period of time, has met their projected goals. Using a financial forecast is what has made companies big. They have made projection as a small company and became huge. Taking the sales and income of the following year or the last quarter is how they make projection of the next year or next quarter. Sales and inventory of the past year or quarter helps them to make a financial forecast.

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