Exam 11: Forecasting Financial Requirements

Which source of information would be the most inclusive for an entrepreneur determining information to complete the financial statements?

To be realistic, an entrepreneur should project profits only one year into the future.

Roland has already projected his company's sales.  The next step in forecasting his company's income is to project:

After pro forma statements are prepared, they should be checked against actual results every month so projections can be modified.

Zeno had a great idea but no cash so he asked the bank for a loan to finance the entire operation.  It seems he forgot that a bank would never provide _______ % of the firm's financing.

Verlin wants to avoid a common mistake often made by new entrepreneurs.  What advice would you give him?

Jake has prepared pro forma financial statements for his landscaping business.  At the minimum, how often should he check results and make modifications as needed?

A simple listing of expected cash inflows and outflows provides the entrepreneur with a(n)

High-tech businesses (such as computer manufacturers) generally require fewer assets than service businesses.