GROUP 3

BUSINESS FINANCE
FINANCIAL PROJECTIONS
AND BUDGET
WHAT IS BUDGETING?
 BUDGETING

is the process of IDENTIFYING, GATHERING, AND

COMMUNICATING FINANCIAL AND NON-FINANCIAL
INFORMATION about an organization’s future activities.
 BUDGET
is an OPERATIONAL PLAN AND CONTROL TOOL for an
entity that identifies the resources and commitments
needed to satisfy the entity’s goals over a period.
 FORCASTING

is a TOOL USED FOR PREDICTING FUTURE

DEMAND based on past demand information
 TYPES OF FORCASTING
QUALITATIVES METHOD QUANTITATIVE METHOD

Rely on subjective Rely on data and

opinions from one analytical
or more experts. techniques.
 PROJECTED FINANCIAL
STATEMENTS
It is a financial projection that
represents an entity’s financial
position, results of operation and
cash flows.
PROJECTED STATEMENT OF
COMPREHENSIVE INCOME
Assume the following:
LETS TRY!!!!!
PROJECTED STATEMENT OF FINANCIAL POSITION
LETS TRY!!!!!

Assume the following:

 PROJECTED
PROJECTED
2018 INCREASE/
BALABCE
DECREASE
ASSET
CURRENT ASSET:
CASH
CASH
EQUIVALENTS
ACCOUNTS
RECEIVABLE

INVENTORY

TOTAL CURRENT
ASSET
NON-CURRENT
ASSET;
PROPERTY, PLANT,
& EQUIPMENT
TOTAL ASSETS
LIABILITIES&EQUITY
CURRENT LIABILITIES
LONG- TERM
LIABILITIES
TOTAL LIABILITIES

EQUITY

TOTAL LIAB. & EQUITY

THANK'S FOR
WATCHING