UNIT 14 : Tools of F orecasting Financial Statement Dr. K. Kiran Kumar Strategic Financial Management
Introduction Forecasting financial statements are expected future financial statements bases on conditions that management expects to exists and actions it expects to take. A cash budget only gives us information of prospective future cash positions of the firm. Whereas, forecast statements include expected estimates of all assets and liabilities and of income statements items. The forecast financial statements also enable a financial manager to use the tax estimates from forecast income statement.