Book description
Many companies fail to succeed due to poor planning, which is one reason why accountants are in big demand. Skilled at forecasting, accountants can plan a company's future by determining the maximum sustainable growth and predict its external fund requirements. This book provides you with the basic tools necessary to project the balance sheet and statements of income and cash flow, enabling you to add a unique value to your client(s) work.
This book will prepare you to do the following:
- Recall the basics of planning and forecasting financial statements
- Recall considerations related to a basic forecasting model
- Identify the evidence of growth mismanagement and develop the skills to determine maximum sustainable growth
- Apply statistical procedures to forecasting
- Analyze projected or forecasted financial statements
Table of contents
- Chapter 1 Forecasting Prerequisites
-
Chapter 2 Using the Basic Forecasting Model
- Making Assumptions
- Percent of Sales and Sales Forecasts
- The Basic Forecasting Model
- Explanation of the Basic Model
- Identification of Spontaneous and Quasi-spontaneous Accounts
- The Basic Model: An Example
- Using the Basic Model for Planning
- The Basic Model: Sensitivity Analysis
- The Zeta Company Case Study
- The Balance Sheet: Percent of Sales Method
- Forecasting the Balance Sheet: An Example
- Using the Projected Balance Sheet for Decision Making: Capital Structure Decision
- Methods of Financing EFN
- Using the Projected Balance Sheet for Decision Making: Working Capital Decisions
- Using the Projected Balance Sheet for Decision Making: Retention Decisions
- Problems and Limitations Associated with the Basic Model
- Case Study
- Chapter 3 Management Uses of the Forecasting Technique: A Case Analysis on Working Capital Planning
-
Chapter 4 Using Forecasting to Plan the Company's Capital Structure
- Value of the Firm
- The Effect of Debt on the Cost of Capital
- Other Factors: Bankruptcy Costs
- Financing the Expected Funds Needed (EFN): Capital Structure Theory
- Relation of Cost of Capital and Value to Debt Ratio
- Optimal Capital Structure
- Factors Influencing Debt Usage
- Short Versus Long-Term Debt
- Case Studies
- Chapter 5 Forecasting the Balance Sheet: Statistical Procedures
- Chapter 6 Forecasting the Income Statement
- Chapter 7 Reconciling the Income Statement and Balance Sheet
- Chapter 8 Evidence of Growth Mismanagement
- Chapter 9 Maximum Sustainable Growth
- Chapter 10 Forecasting Sales
- Chapter 11 Integrating the Percent of Sales with a Shorter-Term Forecast of Cash Needs
- Appendix A The Basic Forecasting Model
- Glossary of Controllership and Financial Management Terms
- Solutions
- EULA
Product information
- Title: Financial Forecasting and Decision Making
- Author(s):
- Release date: May 2018
- Publisher(s): Wiley
- ISBN: 9781119514299
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