Foundations Of Finance
Foundations Of Finance
10th Edition
ISBN: 9780134897264
Author: KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher: Pearson,
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Chapter 14, Problem 2RQ

Discuss the shortcomings of the percent of sales method of financial forecasting.

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Why is an accurate sales forecast critical for financial planning?
1. Discuss the other types of forecasting methods that financial analysts use to predict future revenues. 2. Are there any several other factors that may need to be considered that affects the sales forecast?
What advantages does the forecasted financial statement method have over theAFN equation for forecasting financial requirements?
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