Key inputs to short-term financial planning are ________.
A) cash flow statements and income statement
B) pro forma financial statements
C) sales forecasts, and operating and financial data
D) leverage analysis and pro forma income statement

Question

Quizplus · Accepted Answer

Short-term financial planning requires a thorough understanding of the company's sales forecasts, operating and financial data to determine short-term obligations and requirements. Cash flow statements and income statements are historical reports that offer limited insight into short-term planning. Pro forma financial statements and leverage analysis are more useful for long-term planning.

Key Inputs to Short-Term Financial Planning Are ________