《财务管理》课程PPT教学课件（英文版）Chapter 04 Financial forecasting, Planning, and Budgeting

Ch. 4: Financial Forecasting, Planning, and Budgeting ◎2002, Prentice Hall. Inc

Ch. 4: Financial Forecasting, Planning, and Budgeting © 2002, Prentice Hall, Inc

Financial Forecasting 1)Project sales revenues and expenses

Financial Forecasting • 1) Project sales revenues and expenses

Financial Forecasting 1)Project sales revenues and expenses。 2) Estimate current assets and fixed assets necessary to support projected sales

Financial Forecasting • 1) Project sales revenues and expenses. • 2) Estimate current assets and fixed assets necessary to support projected sales

Financial Forecasting 1)Project sales revenues and expenses。 2) Estimate current assets and fixed assets necessary to support projected sales Percent of sales forecast

Financial Forecasting • 1) Project sales revenues and expenses. • 2) Estimate current assets and fixed assets necessary to support projected sales. – Percent of sales forecast

Percent of sales Method Suppose this years sales will total S32 million Next year, we forecast sales of S40 million Net income should be 5%o of sales Dividends should be 50%o of earnings

Percent of Sales Method • Suppose this year’s sales will total $32 million. • Next year, we forecast sales of $40 million. • Net income should be 5% of sales. • Dividends should be 50% of earnings

This year %o of S32m Assets Current assets Sam 25% Fixed assets S16m 50 Totalassets S24m Liab. and equity Accounts Payable S4m 12.5 Accrued Expenses S4m 12.5% Notes Payable SIm n/a Long Term Debt Scm n/a Total liabilities Common Stock Sam n/a Retained earnings S2m equity Sam Total Liab. equity S24m

This year % of $32m Assets Current Assets $8m 25% Fixed Assets $16m 50% Total Assets $24m Liab. and Equity Accounts Payable $4m 12.5% Accrued Expenses $4m 12.5% Notes Payable $1m n/a Long Term Debt $6m n/a Total Liabilities $15m Common Stock $7m n/a Retained Earnings $2m Equity $9m Total Liab. & Equity $24m

Next year 0o of s40m Assets Current assets 25% Fixed assets 50 Totalassets Liab. and equity Accounts Payable 12.5 Accrued Expenses 12.5% Notes Payable n/a Long Term Debt n/a Total liabilities Common Stock n/a Retained earnings equity Total Liab. equity

Next year % of $40m Assets Current Assets 25% Fixed Assets 50% Total Assets Liab. and Equity Accounts Payable 12.5% Accrued Expenses 12.5% Notes Payable n/a Long Term Debt n/a Total Liabilities Common Stock n/a Retained Earnings Equity Total Liab. & Equity

Next year of $40m Assets Current assets S10m 25% Fixed assets 50 Totalassets Liab. and equity Accounts Payable 12.5 Accrued Expenses 12.5% Notes Payable n/a Long Term Debt n/a Total liabilities Common Stock n/a Retained earnings equity Total Liab. equity

Next year % of $40m Assets Current Assets $10m 25% Fixed Assets 50% Total Assets Liab. and Equity Accounts Payable 12.5% Accrued Expenses 12.5% Notes Payable n/a Long Term Debt n/a Total Liabilities Common Stock n/a Retained Earnings Equity Total Liab. & Equity

Next year of $40m Assets Current assets S10m 25% Fixed assets S20m 50 Totalassets Liab. and equity Accounts Payable 12.5 Accrued Expenses 12.5% Notes Payable n/a Long Term Debt n/a Total liabilities Common Stock n/a Retained earnings equity Total Liab. equity

Next year % of $40m Assets Current Assets $10m 25% Fixed Assets $20m 50% Total Assets Liab. and Equity Accounts Payable 12.5% Accrued Expenses 12.5% Notes Payable n/a Long Term Debt n/a Total Liabilities Common Stock n/a Retained Earnings Equity Total Liab. & Equity

Next year of $40m Assets Current assets S10m 25% Fixed assets S20m 50 Totalassets S30m Liab. and equity Accounts Payable 12.5 Accrued Expenses 12.5% Notes Payable n/a Long Term Debt n/a Total liabilities Common Stock n/a Retained earnings equity Total Liab. equity

Next year % of $40m Assets Current Assets $10m 25% Fixed Assets $20m 50% Total Assets $30m Liab. and Equity Accounts Payable 12.5% Accrued Expenses 12.5% Notes Payable n/a Long Term Debt n/a Total Liabilities Common Stock n/a Retained Earnings Equity Total Liab. & Equity