Which of the following is the first step in forecasting a firm future financing need using a long-term financial plan?
A)Prepare pro forma financial statements
B)Estimate the firm's financial needs
C)Construct a sales forecast
D)Any of these can be done first

Question

Quizplus · Accepted Answer

The first step in forecasting a firm's future financing needs is to construct a sales forecast. This is because the sales forecast will provide the necessary information to estimate the future financial needs of the company. Once the sales forecast is completed, the firm can then prepare pro forma financial statements and estimate its financial needs based on projected revenues and expenses.

Which of the Following Is the First Step in Forecasting