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Part 1: Respond to the following discussion:
The percent of sales method is based on historical information. Giving consideration to the turbulent first decade of this century with wars and shortages of food and fuel, do you think that looking to the past is the best way to predict the future? Are there any alternatives or adjustments to the percent of sales method that you can suggest?
Part 2: Respond to the follow classmate's discussion:
"I'm a firm believer of using historical data, and using it in the percent of sales method should continue. While it can be said that certain conditions are verging on the unknown, we have had wars before, we have had fuel and food shortages before, we've had severe weather related disasters before. The way these events impacted businesses should be taken into account to help predict the future growth of a company based on the current economic and political climate we find ourselves in.
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This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.
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