Categories
Finance

Explain how projected economic scenarios can be used to help forecast a firm’s sales growth rate.

Week 9: Discussion
1717 unread replies.1717 replies.
Explain how projected economic scenarios can be used to help forecast a firm’s sales growth rate.
What is the percent of sales forecasting method and what are some limitations of this methodology? Please provide 3 different limitations.
DB POSTING REMINDERS:
Please remember the initial post should be written as early in the week as possible, and the peer responses
When you make your initial post, please fully answer the question and make substantive responses – i.e. at least 400 words that really dive into the topic and show that you’ve read the text and done research to support your opinions.
Apply appropriate examples that illustrate your points – feel free to bring your workplace experiences into the discussion. It helps us all learn when we can relate our past workplace experiences to what we’re learning here in the discussions.
You must reply substantively (at least 50 words that welcomes further discussion) at least twice to your classmates and/or your instructor.
You may not use any quoted material even if sources are cited. Please make sure all posts are written entirely in your own words.
Please complete the homework as required. Please remember that I am an international student from China. Please don’t use too difficult grammar and vocabulary. Don’t forget to reply to the classmates post, which is also part of the homework.
first classmates post:
June 20, 2021
11214 MGT3353-OL
Professor:
Entrepreneurial Financial
1. Explain how projected economic Scenario can be used To help forecast a firm’s growth Rate.
Forecast is a technology that use history data as imports to make inform estimates that are predicted in demonstrate in the direct of for the transparent businesses US utilize forecast to determine how to allocate Deb budget or plans for a dissipated expenses for an upcoming. Time. This is type of on the project the man will the goods and service Offered. Investors your last forecast into the tournament i
f events affected it company such as sales expectation, with crease or decrease the price of shed that company premier forecast in also for my import benchmark for firms, which did a long-term perspective of operations.
Stock and list use what casting 2 extra publicly all trans, such as GPD or Stock and list use what casting 2 extra public all trans, such as GPD or unemployment which charge in the comment or quarters of years. The for out the forecast, the high of the chance that the estimate will be in.. Final Can you use the last forecast and Alaska potential impact of change in business operations for instance data maybe connected regarding the impact of the customers satisfaction by changing business hours or the productively of flurries up on changing setting work conditions.
Stock and list use various forecast in method to the tournament how stock price remove in the future. They might look at revenues and compared to economic indicator. Changes to financial or Cisco data a observe to determine the relation between multiple varieties. These relation maybe based on the patches of time or the occurrence of pacific events. Were sample come A. cell forecast maybe based on a pacific. The passage of the next 12 months or the occurrence of an event the purchase of competitors business.
2. What is the percent sales forecasting Method and what are some limitations Of this mythology? Please provide 3Different limitations.
The percentage of sales forecast in method is it type of forecast in the assumes most balance sheet and income statement account flexible with sales. This is a message of forecast it and makes many assumptions about the future and use many varieties. Predicted if future on past performance has many hit her read it rest. For this reason comedy The percentage of sales forecast in method is it type of forecast in the assumes most balance sheet and income statement account flexible with sales. This is a message of forecast it and makes many assumptions about the future and use many varieties. Predicted if future on past performance has many hit he read it rest. For this reason comedy unlimited associate with the percent that says forecast I’m method.unlimited
When come cos you sales forecast in, dub companies predict the business dollars and unit sales When come cos you sales forecast in, dub companies predict the business dollars and unit sales for a pacific future.. Dependent on the forecast comic this perk at represent is singer quarter or several years. The company topical makes these prediction based on historical data and previous sells figures. This includes the consideration of past performance, consumer spending pattern, mark trance, interest rate is, if lations and applaud unemployment raise courier additional a company worth topically consider data from competitors and regional, nation and international trance in the industrial. The percentage of sales forecast in method Is a to used by management to predict sells for the organization.
second classmates post:Hello Everyone,
Projected economic scenarios are useful in many ways, it can help forecast a firm’s sales growth in many ways. For example, a firm might choose to forecast future sales growth, by using different scenarios such as slow economic growth, average economic growth and rapid economic growth, a frim can forecast future sales and predict the outcome in those three different scenarios. This can also predict short term growth and long term growth. All this is possible if there are not unknown natural events that can interfere with this type of forecasting, one example of this is the current pandemic, it slowed down the whole economy and no one predicted it was coming, as a result of this, many business took losses that they were not expecting and many went out of business, in the other hand, retail and online companies saw an increase in sales. This method can forecast sales, income statement, balance sheet and statement of cash flows.
According to the e-text The percent-of-sales forecasting method projects account balances by assuming that most expenses and balance sheet items can be expressed as a percent of sales. (Leach J. C., & Melicher R. W. 2014). Some limitations of this methodology is that if the cost of goods sold the previous year were a certain amount, for example $200,000 dollars in sales, it is expect to remain the same for the current year which is $200,000 dollars in sales. If assets sales were 50 percent of sales last year, it is forecasted to be 50 percent of sales next year. It will also apply to balance sheets, if a cost of balance sheet item is expected to to remain the same as the percentage of sales from year to year and then it will grow at the same rate as sales.
Leach J. C., & Melicher R. W. (2014). Entrepreneurial Finance. [VitalSource Bookshelf]. Retrieved from https://online.vitalsource.com/#/books/9781305156180/
Comments from Customer
Discipline: financing the entrepreneurial