Corporate Finance #3 Forecasting & budgeting
Learn concepts of forecasting & budgeting from a certified public accounting (CPA)
405 Forecasting Objectives
410 Pro Forma Income Statement
415 Cash Budget
420 Pro Forma Balance Sheet
425 Percent of Sales Method
414 Sales Projection – Multiple Scenarios
416 Estimated Net Sales
418 Projected Units to be Produced
423 Calculate Cost of Goods Sold Using FIFO & LIFO
424 Calculate Cost of Ending Inventory LIFO & FIFO
427 Schedule of Cash Receipts
428 Schedule of Cash Receipts – Multiple Scenarios
430 Schedule of Cash Payments
431 Schedule of Cash Payments – More Complex
432 Production Schedule & Schedule of Cash Payments
434 Cash Budget & Cash Receipts Schedule
435 Cash Budget, Cash Receipts Schedule, Cash Payments Schedule
437 Required New Fund Formula All Balance Sheet Accounts Change Relative to Sales
438 Required New Fund Formula – Current Assets & Liabilities Change Relative to Sales
414 Sales Projection – Multiple Scenarios
416 Estimated Net Sales
418 Projected Units to be Produced
421 Calculate Cost of Goods Sold Using FIFO
423 Calculate Cost of Goods Sold Using LIFO & FIFO
427 Schedule of Cash Receipts
428 Schedule of Cash Receipts – Multiple Scenarios
430 Schedule of Cash Payments
431 Schedule of Cash Payments – More Complex
432 Production Schedule & Schedule of Cash Payments
434 Cash Budget & Cash Receipts Schedule
435 Cash Budget, Cash Receipts Schedule, Cash Payments Schedule
436 Cash Receipts, Cash Payments, & Cash Budget
437 Required New Fund Formula – All Balance Sheet Accounts Change Relative to Sales
438 Required New Fund Formula – Current Assets & Liabilities Change Relative to Sales
This course will cover the concepts of forecasting and budgeting from a finance perspective.
The course includes many example problems, both in presentation form, and many using Excel worksheets. Each Excel worksheet problem will include a downloadable Excel worksheet that has at least two tabs, one having the answer, the second including a preformatted worksheet that can be populated in a step-by-step process along with the instructional video.
To forecast and budget we need to make predictions and projections about the future. This is often done by first taking information from the past as our starting point. The starting point will generally be our prior financial statements, including our prior balance sheet, income statement, and statement of cash flows.
We will then consider changes that we expect to take place, including those we plan on making and changes to the economy and business environment.
When constructing our budgets will need to go in a systematic order. We usually need to start with a sales projection because other projections will depend on it.
Our budget process can then consider the production plan. We can then move to the capital budget, cash budget, and budgeted income statement. The budgeted income statement is our primary performance statement.
Once we have the beginning balance sheet and the projected income statement, we can create the projected balance sheet, the statement representing where we expect to be at the end of the budgeted time frame.