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Financial Statement Forecasting

Financial Statement Forecasting Financial Statement Forecasting The financial statement forecasting begins with  the forecasting of the future estimates that are made through preparation of statement like projected income statement, projected balance sheet, projected cash flow and fund flow statements, cash budget, preparation of projected financial statements with the help of ratios etc. Financial statement forecasting is useful in making various financial decisions like capital investment, annual production level, operational efficiency required, requirement of working capital, assessment of cash flow, raising of long term funds, estimation of funds requirement of business, estimated growth in sales etc. When we forecast the financial statement we forecast the Profit and Loss and Cash Flows. From these financial statements, we get the forecasted Balance Sheet. When we prepare the Profit and Loss, we start from the sales figures. For forecasting the sales figure...

Things You Need To Know Before Getting A Mortgage

Buying a house is one of the biggest financial decisions a person can make. It’s hard to understand where you should begin or what the most important things are to consider when it comes to taking out a mortgage Whether you want to purchase your first home, an investment home, or a vacation home, it’s important to know what you need to know before getting a mortgage. First and foremost, know your credit score and be prepared to explain your credit history. Your credit score is one of the most important factors when it comes to a lender making a decision whether to grant you a mortgage. While it can take time to improve your credit score, it’s important to address any red flags that lenders may see during their review. Pay close attention to your score and start improving it as soon as possible if you find any discrepancies. Next, know your overall financial situation and determine how much you can afford. You’ll need a financial buffer and it’s advisable to have access to funds for mai...

Technical analysis of the stocks

  Technical analysis of stocks Technical analysis is similar to simulation technique. Here, we make the analysis of the past data and on the basis of this analysis, we’ll forecast the price movement. Technical analysis can be used in the equity market, derivative market, commodity market, etc where the theory of supply and demand works. Technical analysis only talks about the trend and patterns. It ignores the other factors like economic growth, monetary policies, interest rates, etc. Technical analysis involves analysis of a lot of charts, patterns, trend lines and other various indicators. In layman terms, it is just the identification of patterns in the market and following the trend in order to earn a good return. It is a scientific method that is based on a number of significant assumptions. Some of the major assumptions are : History always repeats . The trend of stocks always tends to repeat. The behavior of an investor or trader in most of ...