Business Finance Online

Financial Forecasting Exercise

This exercise illustrates Financial Forecasting using the "Percentage of Sales" approach. Click the "New Problem" button to generate a new problem. Then express the balance sheet and income statement accounts as a percentage of sales. Next, construct "Partial Pro-Forma" financial statements and determine the External Financing Needed to meet the forecasted growth rate in sales. Complete the exercise by using the specified "Plug" to construct the "Pro-Forma" financial statements. After attempting each of the calculations you can click the buttons to view the solutions. The worksheet also functions as a calculator. You can enter your own data into the fields and then click the buttons to view the solutions.

Balance Sheet ($ in Millions)
Assets 1998   Liabilities and Owners' Equity 1998  
Current Assets     Current Liabilities    
Cash Accounts Payable
Accounts Receivable Notes Payable
Inventory Total Current Liabilities
Total Current Assets Long-Term Liabilities    
      Long-Term Debt
Fixed Assets     Total Long-Term Liabilities
Net Fixed Assests Owners' Equity    
      Common Stock
      Retained Earnings
      Total Owners' Equity
Total Assets Total Liab. and Owners' Equity
Income Statement ($ in Millions)
  1998  
Sales
Costs
Taxable Income
Taxes
Net Income
Dividends
Addition to Retained Earnings
Other Information
Forecasted Growth Rate in Sales
Plug: 
External Financing Needed

 

 

 

 

 

© 2002 - 2010 by Mark A. Lane, Ph.D.