Sales Forecasting and Cash Flow

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Please respond to the following:

  • An important step in developing a projected (pro forma) income statement is to create a sales forecast and calculate anticipated revenue for the business. Imagine you are creating a business: develop a sales forecast and estimate revenue for the first year of operation, and describe the process you used to arrive at your estimates.
  • The three (3) primary causes of cash flow problems in a business are accounts receivable, accounts payable, and inventory. Imagine you are creating a business: identify one (1) cause of cash flow problems that you believe will be the most challenging for your company. Next, discuss the strategies you will use to mitigate problems in this area.

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