Financial Statement Forecasting
Projecting Future Performance
Financial models often forecast future income statements, balance sheets, and cash flow statements based on assumptions about sales growth, costs, investments, and financing.
- Forecast revenue growth.
- Estimate operating expenses.
- Project capital expenditures.
- Estimate financing needs.
- Forecast cash flows.
Note
Forecasts should remain internally consistent across all financial statements.
Summary
Forecasted financial statements provide a comprehensive view of future organizational performance.