Forecasting

Key Terms

balance sheet
a financial statement that reflects a firm's asset, liability, and equity account balances at a given point in time

cash deficit
an excess of cash outflows over cash inflows for a given period

cash forecast
a financial statement that estimates a firm's future cash inflows and outflows

cash surplus
an excess of cash inflows over cash outflows for a given period

common-size
describes a financial statement in which each element is expressed as a percentage of a base amount

financing activities
cash business transactions reported on the statement of cash flows that reflect the use of financed funds

forecast
an estimate of future performance based on historical performance and other contextual information

income statement
a financial statement that measures a firm's financial performance over a given period of time

investing activities
cash business transactions reported on the statement of cash flows that reflect the acquisition or disposal of long-term assets

operating activities
cash business transactions reported on the statement of cash flows that relate to ongoing day-to-day operations

pro forma
in the context of financial statements, forward-looking

scenario analysis
analysis of how various situations and circumstances would impact the financial forecast

sensitivity analysis
analysis of the sensitivity of an output variable to a change in an input variable

statement of cash flows
a financial statement that lists a firm's cash inflows and outflows over a given period of time

statement of stockholders' equity
a financial statement that reports the difference between the beginning and ending balances of each of the stockholders' equity accounts during a given period