Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Financial Forecasting
Financial forecasting refers to determination of the firm of financial requirements in advance. Financial forecasting is needs financial planning using budgets.
The financial forecasting and planning will determined also the firm the activities should undertake in order to achieve its financial targets.
Financial forecasting is significant in the following ways like:
1. Facilitate financial planning that is determination of cash surplus or deficit such are likely to happen in future.
2. Facilitate control of expenditure. This will minimize wastage of financial resources in order to get financial targets.
3. It avoids surprise to the manager's as any cash deficit is identified well in advance so the firm can plan for sources of short term funds that as bank drafts or short term loans.
4. Motivation to the staff - Financial forecasting using targets and budgets will enhance unity of purpose and objectives among staff that are determined to achieve the set target.
Characteristics of Sole Proprietorship A. It caters for customers' personal attention B. Accounts do not must be audited C. Limited to such finances like: F
Monitoring Costs - Agency Costs This is incurred to prevent undesirable managerial actions. They are meant to ensure that both parties live to the spirit of agency contract. T
Rights of Ordinary Shareholders A. Right to vote Choose BOD Purchase/Sales of assets B. Influence decisions as: Right to residual ass
Profitability Index or P.I. P.I. (benefit-cost ratio) = Present value of inflows / Present value of cash outlay Whether P.I. is greater than 1.0, invest and whereas less th
The Morris Corporation has $ 600,000 of debt outstanding, and it pays an interest rate of 8% annually. Morris’s annual sales are $# million, its average tax rate is 40% and its net
DIY Inc. plans to raise $200,000 with a right offering. The current stock price is $100 and there are 80,000 shares outstanding. a. If DIY sets the subscription price to be $80
what are control
A current radio advertisement states that the average American household has an average credit card debt of $25,000. Based on an APR (Annual Percentage Rate) of 18% (common for cre
Conditions under which Loans Are Ideal a) Whenever the company's gearing level is low as the level of outstanding loans is low. b) The company's future cash flows as inflows
Consider an economy with three dates {t=0, 1, 2}. A firm has assets in place that generate an output (profit) of either 40 in state L or 160 in state H at t=2. Bothe states equally
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd