Topic5 Financial planning financial statement as the basis for forecasts

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Topic5Financial planning- financial statement as
the basis for forecasts
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• Content
• Revision of financial statement
• Financial statement as the basis for forecasting
• Assumption needed for forecast statement
• Using forecasts to help in decision making
• Illustration of the use of a spreadsheet for
  planning

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• Revision of financial
• The balance sheet -study guide p142
• The profit and loss statement -study guide p143
• The cash flow statement -study guide p144

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• Financial statement as the basis for forecasting
• Example 5.1
• Activity 5.1

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• Assumption needed for forecast statement
• Relating to the profit and loss account
• Sales p149
• Cost of sales and associated expensesp149
• activity 5.2
• Depreciation and related costs p150
• Activity 5.3, 5.4, 5.5,
• Appropriations of profits p152

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• Assumption needed for forecast statement
• Relating to the balance sheetp152
• Fixed assets
• Working capital
• Loan
• Capital

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• Assumption needed for forecast statement
• Relating to the cash flow statement
• Profit
• Depreciation adjustments/disposal of fixed assets
• Fixed asset acquisitions
• Levels of working capital
• Loan raised and repaid
• Taxation and dividends
• Capital raised and redeemed
• Activity 5.6

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• Using forecasts to help in decision making
• Sensitivity analysis
• Activity 5.6
• Activity 5.7
• Activity 5.8

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• Illustration of the use of a spreadsheet for
  planning
• Appendix to topic 5
• Example 5A.1
• Activity 5A.1