Tutorial

Prospective Analysis

Question $1$

a$.$ Why is it so important to study prospective analysis?

b$.$ Describe;

i$.$ the steps undertaken before the process of forecasting?

ii$.$ the steps in forecasting the income statement?

iii. the two$-$steps process of forecasting the balance sheet?

Question $2$

Comparative income statements and balance sheets for $F$&$N$ are shown below $($ $ millions$)$:

$\backslash$table$[[,$Year $2,$Year $1],[\backslash$table$[[$Income Statement$],[$Net sales.$],[$Cost of goods$]],\backslash$table$[[$$$20,092$