StudentShare solutions
Triangle menu

Financil Forecast - Essay Example

Nobody downloaded yet

Extract of sample
Financil Forecast

In this case it also has the option of going to the market and raising the equity. But that depends a lot on the market conditions.
From the table it is quite clear that the firm had grown during the initial phase of two years and there after the growth more or less stopped. The average method of forecasting the growth says that the company will grow next year by 10.4%. However this may or may not be true considering the fact that during the previous two years there had been no growth. Hence let us assume here that the firm grows by 5% in the next year.
Let us consider the financial results of the company PZ Cusson for the year 2004-05. Suppose that the turnover of the company is predicted to increase by 5% in the next year. Let us consider the profit and loss statement of the company and see what will be effect of increase in turnover by 5% on various parameters.
As mentioned earlier as there is increase in the turnover there is increase in the cost of production also. More raw materials will be required and there may be increase in the labors also to meet the increased demands. To meet these extra requirements the company needs to increase it assets.
Now the shortfall can be compensated from the profit retained by the company, but in that case we had assumed that the interest rate remains unchanged. Hence we have to later find if the extra money will really be required from the market.
If a firm is growing it is likely to need extra assets but, equally, it will be generating extra liabilities. The shortfall of 5483 between the assets and the liabilities is ...Show more

Summary

Forecasting: Forecasting is a very important tool for the company to find the extent to which company can grow in the future. This helps the company to arrange for the resources required for that growth. If the firm was previously inefficient, then by becoming it more efficient it may be able to grow without extra costs incurred…
Author : erlinghickle
Financil Forecast essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Financil Forecast"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Accounting Evaluation And Forecast
According to Carter & Usry, activities of an organization can be divided to three large groups, which are Planning, Organizing and Controlling. Theoretical literature often divides these activities into different subjects. In practice however, it is hard to separate these activities into different groups.
9 pages (2250 words) Essay
Economic Indicator Forecast
State of Oregon projects that GDP will fall by 2.6% a rate that is not alarming in the short run given the resilience the economy has shown. Unemployment rate: Projections for unemployment (% of the labor force) are that the rate will be 5.2%.
2 pages (500 words) Essay
Macroeconomic forecast paper
The national unemployment rate forecast by the CBO for 2005 is indicated at 5,2 % (n.d.,n.p.). For the 2006 and next few years in a row the figure stays the same. However, the Bank of Montreal Economics Department has a different perspective on the issue of unemployment dynamics: the decline of unemployment rate from 5,5% in 2005 (which is significantly higher than CBO's estimate) to 5,3 % in 2006 (which is still higher), is foreseen (Egelton, 2005, n.p.).
1 pages (250 words) Essay
Economics Forecast Paper
This paper aims to analyze and forecast the relationship between interest rates and housing industry across the United States in general and in the state of California in particular. Interest rates and housing starts have an inverse relationship
2 pages (500 words) Essay
Economic Indicator Forecast Paper
According to forecasts made by Financial Forecast Center, the prime interest rates will move within the range of 3.25% until Oct 2009.
6 pages (1500 words) Essay
UV Index Forecast
ncys website on the Sunrise Program at www.epa.gov/sunrise/uvindex.html gives students valuable information regarding UVs and the danger of sun exposure. It gives a forcast of UV Index for every city or town in the United States. The UV index Forecast for Colorado Springs, CO,
1 pages (250 words) Essay
Sales and Financial Forecast
According to Bojanic & Reid (2009) a budget in strategizing any sales has to be the guide that allows one to carry out the required activities and not a constraint that limits the extent to which these activities are carried out. A budget has to
1 pages (250 words) Essay
Manitoba unemployment rate forecast
Manitoba is ranked as one of the most stable economies in Canada due to its structural advantages. They include the vast industrial base, balanced exports to regional and global markets, and an
4 pages (1000 words) Essay
Forecast analysis
The model is approximately 100% or 1, which showed a perfect fit between the variables tested. The R2 showed how the variables used (time, real GDP and
2 pages (500 words) Essay
Analysts dispersion forecast
ique market research, our management has identified lucrative opportunity, and would thus like to propose a new trading strategy to facilitate the fund’s return. The basis of our recommendation is the evidence of a negative correlation between security returns and the Analysts
2 pages (500 words) Essay
Hire a pro to write
a paper under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Click to create a comment
Contact Us