Content preview from Fundamentals of Financial Management, Third Edition
- mark true or false.
- Forecasts of single variables are combined to arrive at a complete forecast.
- The projection of sales depends on past trends along with some casual events affecting the trend.
- Regression analysis is used to make forecasts.
- Ratios are normally not used to make forecasts.
- The forecast of variables has nothing to do with projected sales.
- Cash-flow approach and the balance-sheet approach are the two methods of making a complete forecast.
- Balance-sheet approach is a substitute for a cash-flow forecast.
- Choose the most suitable answer.
- Proforma balance sheet can be developed on the basis of:
- cash-flow forecast only
- proforma income statement
- neither of the above
- A cash-flow forecast is developed on ...
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ISBN: 9789332508170