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Using Accounting & Financial Information by Mark S. Bettner

Author:Mark S. Bettner [Mark S. Bettner] , Date: July 6, 2020 ,Views: 248

Using Accounting & Financial Information by Mark S. Bettner

Author:Mark S. Bettner [Mark S. Bettner]
Language: eng
Format: epub
Tags: Business
Publisher: Business Expert Press
Published: 2018-04-15T16:00:00+00:00


Figure 5.1 Summary of forecasting variables: year-2 and year-3

From the input data summarized in Figure 5.1, projected income statements, balance sheets, and statements of cash flows were created for Year-2 and Year-3. The statement of retained earnings is embedded in the shareholders’ equity section of each balance sheet.

Forecasted Income Statements

Long-term financial forecasts begin with the preparation of forecasted income statements. Hometown’s actual income statement for the current year and its projected income statements for Year-2 and Year-3 appear in Figure 5.2.



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