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Why companies prepare financial forecast

Assignment Help Financial Accounting
Reference no: EM133009779 , Length: word count: 500

Question 1: Explain why companies prepare financial forecast when it comes to financial planning.

Question 2: Explain the effects of the following scenarios regarding the changes in additional funds needed:

  1. Increasing dividend payout
  2. Increasing market competition, lowering the profit margin
  3. Paying suppliers on delivery, taking up discount advantages for rapid payment of purchases
  4. Changing the sales policy by starting to sell on credit

Reference no: EM133009779

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