About This Chapter
Financial Projections - Chapter Summary
This comprehensive overview of financial projections is designed to give you an in-depth look projected income, cash flow projections and much more. Refresh your knowledge of these concepts by accessing fun video and text lessons at any pace that suits your schedule. In no time, you will be ready to:
- Discuss the basics of project cash flows and pro forma financial statements
- Define projected income, and describe how it is calculated and why it is important
- Explain the purpose, steps and uses of financial statement projections
- Describe the reasons and uses for creating cash flow projections
All lessons in this chapter are accessible from any tablet, smartphone or computer with an Internet connection. Navigate them in any sequence and as often as needed to fully comprehend financial projections. Use multiple-choice quizzes and a practice chapter exam to find out how much you grasp from the lessons. If you have questions about this chapter's topics, be sure to submit them to our experts.
1. Pro Forma Financial Statements & Project Cash Flows
In this lesson you'll learn about pro-forma financial statements and how to estimate specific line items on the balance sheet, income statement, and statement of cash flows. We'll also discuss the difference between pro forma and GAAP.
2. Projected Income: Example & Explanation
What is projected income, and why would you need to know how to estimate it? In this lesson, we'll discuss what it is, how to calculate it and why you might need to create a projection.
3. Financial Statement Projections: Definition & Purpose
In this lesson, we will examine financial projections and why they are used. We will also look at the various things used in a financial projection and why they would be used to make a projection.
4. Cash Flow Projections: Definition & Purpose
Ready access to cash is essential for a business to meet its financial obligations. Let's see how a cash flow projection is created and can be used to successfully manage business income and expenses.
Earning College Credit
Did you know… We have over 200 college courses that prepare you to earn credit by exam that is accepted by over 1,500 colleges and universities. You can test out of the first two years of college and save thousands off your degree. Anyone can earn credit-by-exam regardless of age or education level.
To learn more, visit our Earning Credit Page
Transferring credit to the school of your choice
Not sure what college you want to attend yet? Study.com has thousands of articles about every imaginable degree, area of study and career path that can help you find the school that's right for you.
Other chapters within the Certified Management Accountant (CMA): Study Guide & Test Prep course
- Financial Statements Overview
- Financial Valuation, Recognition & Measurement
- Financial Strategic Planning
- Budgeting Concepts for Accountants
- Forecasting Techniques in Business
- Budgeting Methodologies in Accounting
- Annual Profit Planning
- Cost & Variance Measures in Performance Management
- Responsibility Centers & Reporting Segments
- Performance Measurement in Accounting
- Cost Measurement & Systems
- Overhead Costs
- Understanding Supply Chain Management
- Business Process Improvement
- Governance, Risk & Compliance in Accounting
- Accounting Systems Controls & Security Measures
- Accounting & Enterprise Information Systems
- Data Governance
- Technology-Enabled Finance Transformation
- Data Analytics
- Basic Financial Statement Analysis
- Profitability Analysis
- Financial Statement Special Issues
- Basics of Corporate Finance
- Capital Management Overview
- Corporate Restructuring
- International Finance Practices
- Business Decision Analysis
- Risk Management for Business
- Investment Decisions
- Accountant Professional Ethics
- Certified Management Accountant (CMA) Flashcards