The first step in performing projected financial analysis is to
A) prepare the projected balance sheet.
B) take an inventory of goods.
C) estimate increases in debt.
D) forecast sales as accurately as possible.
E) calculate the projected net income.

Question

Quizplus · Accepted Answer

Forecasting sales as accurately as possible is the first step because sales projections drive other financial projections, such as expenses, profits, and cash flows.

The First Step in Performing Projected Financial Analysis Is to