Describe the steps in financial forecasting


Problem 1:

a. Explain the steps in financial forecasting.

b. Briefly explain how to forecast financial statements using the forecasted financial statements approach. Be sure to explain how to forecast interest expenses.

Question 2: Explain how it is possible for sales growth to decrease the value of a profitable company.

Question 3: What are some actions an entrenched management might take that would harm shareholders?

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