Corporate Finance #3 Forecasting & Budgeting
Learn how to forecast and budget from a certified public accountant (CPA)
What you'll learn
- Forecasting objectives
- How to construct a budget
- How to create a proforma income statement
- How to create a cash budget
- Ho to make a proforma balance sheet
- How to use a percent of sales method
Requirements
- General finance foundation needed
Description
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.
Who this course is for:
- Students
- Business professionals
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