Financial reports are not just summaries of the past—they also include predictions for the future. In fact, most financial institutions are more interested in future performance than historical trends. Banks want to know your future cash flow; investors want to know future profits.

 

In this course, you will learn how to create forecasted financial statements for your company. Learn how to use past data such as cost of goods sold, depreciation expenses, and levels of inventory, and understand what caused those numbers to fluctuate over time. You will then learn how to use the information as the basis for forecasting, applying a simple but powerful equation: assets = liability + equity.

 

You will get hands-on practice building three different documents: a forecasted income statement, a forecasted balance sheet, and a forecasted statement of cash flow. Throughout the course, we will use famous business cases—like Home Depot’s cash-flow crisis—to illustrate the importance of accurate financial forecasts and their impact on business decisions.