One forecasting technique is called the forecasted financial statement approach, and it is used to forecast future financial statements. If you had a company’s balance sheets and income statements for the past five years but no other information, how could you use the forecasted financial statement approach to forecast the following items for the coming year?
(a) Its sales revenues.
(b) Its financial statements.
(c) Its funds requirements (AFN).
(d) Its financial condition and profitability as shown by its ROE and other key ratios.