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Querist : Anonymous

Querist : Anonymous (Querist)

07 March 2011 Hi friends,
Please let me know what is different between financial forecasting & projected financial statement?

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)

08 March 2011 Projected Financial Statements is summary of various component projections of revenues and expenses for the budget period. Projected Financial Statements indicates the expected net income for the period.

Projected Financial Statements are an important tool in determining the overall performance of a company. Projected financial statements have the balance sheet, income statement and cash flow statements to indicate the company performance.

The Balance Sheet shows your assets, liabilities and equity at a particular point in time. It is basically a snapshot of your financial position. The basic accounting formula is assets equal liabilities plus owner’s equity. The asset section of the balance sheet should be presented in order of liquidity starting with the most liquid assets such as cash, accounts receivable and inventory. The liabilities section should be presented in order of maturity starting with liabilities that are payable over the next year such as a demand note payable and accounts payable.

The Income Statement captures profit performance, demonstrates immediate capability to service debt for banks or real potential for growth in returns for venture capital. This is often expressed in terms of sales volume, or compared to industry benchmarks.

for more info:
https://finance.mapsofworld.com/financial-report/statement/projected-financial-statements.html

Forecasting financial statements is a process that involves multiple steps to arrive at forecasted balance sheets, income statements, expense and budget statements used by management and department heads for decision making. One-year forecasts are likely to be more accurate than five-year forecasts because more actual information is likely to be known by each department. However, having long-term financial forecast assists upper management in planning future building, equipment and personnel needs. Long-term forecasts are subject to revisions when actual information becomes known. Individual line items are forecast and then totals are brought together.

for more info:-
https://bizfinance.about.com/od/forecasting/a/fin_forecast.htm

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RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)

24 December 2011 thankyou for participate in ca club india.

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