Learn where a business is headed and the resources it will need to succeed. Find out how to build financial forecasts using income statements and balance sheets.
- Let's say that you started a small business and it's growing at a rapid pace. As the owner, it's your job to allocate resources to make sure the company can flourish. What's a great way to get extra resources? Hit up the investors. But, before you use investors, you need to make sure that you can provide a picture of where your company is heading and how many resources you think you'll need. Don't know where to start? That's okay, this is where I can help. Hi, my name is Yash Patel and I want to welcome you to this course on Financial Forecasting.
Why is forecasting important? Because, without planning ahead, a business may realize a need for money when it's too late. I don't want that to happen to you. Through this course, I'll show you how to make quick forecasting calculations that can help you and your investors gain insights into future resource allocation. To start, I'll go over some basic finance terminology. Then, I'll show you how to do some calculations in a spreadsheet program that'll help you understand the growth and trajectory of your business over time.
Next, I'll show you how to create a short and simple pro forma financial statement that can help you plan for potential growth. Then, I'll delve into converting forecasts into projected cash flows and finally finish up with a short intro to regression analysis for forecasting. So, what are you waiting for? Let's get started!
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- Explain the four different types of financial statements.
- Distinguish between the types of moving averages.
- Determine a seasonal adjusted trend.
- Break down pro-forma financial statements.
- Identify cash flows, and what increased liabilities and decreased earnings generally indicate.
- Tell what a regression is.
- Outline the naive approach.