One of the necessary steps in the financial planning process is a forecast of financial statements under each alternative version of the operating plan in order to analyze the effects of different operating procedures on projected profits and financial ratios.

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Forecasting financial statements is a necessary step in financial planning, as it allows for an analysis of the potential impact of alternative operating plans on projected profits and financial ratios. Such analyses are important for making informed decisions about resource allocation and strategic planning.

One of the Necessary Steps in the Financial Planning Process