Financial Management: Principles and Applications, 13/e

Part 5 Liquidity Management and Special Topics in Finance

Chapter 17 Financial Forecasting and Planning

Chapter Outline

1. 17.1 An Overview of Financial Planning (pgs. 554–555)

   1. Objective 1. Understand the goals of financial planning.

2. 17.2 Developing a Long-Term Financial Plan (pgs. 555–564)

   1. Objective 2. Use the percent-of-sales method to forecast the financing requirements of a firm, including its discretionary financing needs.

3. 17.3 Developing a Short-Term Financial Plan (pgs. 564–566)

   1. Objective 3. Prepare a cash budget and use it to evaluate the amount and timing of a firm’s short-term financing requirements.

Principle Applied