Why is financial planning usually to no financial plan

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Reference no: EM131967283

Question: (a) Describe one way that a projected cash flow budget, a pro forma balance sheet, or a pro forma income statement can be efficiently used for short-term financial planning.

(b) Describe one problem that a financial manager may confront in using a projected cash flow budget or pro forma statement for financial planning.

(c) Identify a common mistake that financial managers make in financial planning and explain how you know that this decision or practice is not efficient.

(d) Why is financial planning usually superior to no financial planning, even when financial managers' forecasted (i.e., expected, anticipated, or predicted) future values turn out to significantly differ from actual future values?

(e) Identify an important financial variable whose future value is difficult to accurately forecast, and explain why it is difficult to accurately forecast.

Reference no: EM131967283

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