In Week 1, you were introduced to the difference between Financial Accounting vs. Managerial Accounting. Although these two methods complement each other, Managerial Accounting is a tool to help with projections and budgeting for a business. This week, we will apply several new formulas to analyze the credit quality of a business to Forecast future Cash Flows.

Description:

Forecasting Cash Flow is truly an art. In Week 5, we will apply several new formulas to analyze the credit quality of another real business.

Purpose:

To apply new formulas in our to Forecast in Cash Flow Analysis

What to gain:

A deeper insight into the following:

What the difference is between all three financial statements
How to build a Proforma Balance Sheet to calculate critical ratios and post closing liquidity
Learn new tools to Forecast and analyze future Cash Flows
How to calculate Break-Even for a business.

Upcoming activities:

Using the information provided, we will do a Cash Flow Analysis to Make a Credit Decision of a loan request based on Forecasting models from previous and the current chapters.

For this week, we will review, analyze, discuss and have a quiz over these returns. We will be focusing in on a privately held company and discussing the credit quality of a loan request as an analyst.