SESSION:18 Financial ForecastingVideo Activity

Session:18 Financial Forecasting

Video Activity

Principles of Finance | Leadership Development – Micro-Learning Session

Rice University 2020 | Michael Laverty, Colorado State University Global Chris Littel, North Carolina State University| https://openstax.org/details/books/principles-finance

What Is a Pro Forma?

1 . What is a pro forma financial statement? What are some scenarios in which you might find a pro forma financial statement helpful?

2 . Why might someone compile a pro forma financial statement that is intentionally inaccurate? What factors contribute to the accuracy of a pro forma?

Cash Flow Forecasting Explained: How to Complete a Cash Flow Forecast Example

3 . Assume you are the financial manager for a large electronics retailer. What benefits could you gain from preparing a cash forecast?

4 . Assume you are the financial manager for a large electronics retailer. You are going to prepare a cash forecast. What key cash inflows and outflows do you anticipate will be in your forecast?