Balance Sheet and New Company Essay

Submitted By Cmspiess1
Words: 336
Pages: 2

Checkpoint: Financial Forecasting Cheri Spiess FIN/200 December 21, 2012 Brian Spencer

Checkpoint: Financial Forecasting Every business needs financial forecasting to help with their success. Any firm will be able to predict its future of receivables, and inventory payables. Forms like these will help anticipate their revenue and borrowing abilities. A brand new company needs to have a sales projection plan and a production plan so they can put together a pro forma income statement. Since they are a new company they might not have a previous prior balance sheet, or income statement. They could still establish budget plans. They would need to secure operating capital and loans from the bank. As a new company they would need to know how much of each product to develop, how much each item should cost to execute, and how much revenue it is expected to bring in. A family owned company is in the same boat, sales projection, production plan, and establish the cash balance account. Like a new company you would need to use the information obtained from these forms to help figure out how much product to produce, how much to sell it for, and the expected revenue from it. Knowing a family business should have a sales plan and budget sheets. It may be necessary to get lending