1.) Please describe the difference between a forecast and a projection. 2.) What factors should you review...

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Accounting

1.) Please describe the difference between a forecast and aprojection.
2.) What factors should you review when evaluating a forecastprovided by management and why?
3.) What are the proper steps in preparing a forecast.
4.) Describe techniques for sales forecasting.
5.) What are the applicable standards related to forecasts.
6.) What role do forecasts play in court.
7.) Describe what the Market Approach is.
8.) What is the guideline public company method?
9.) What are the methods for analyzing guideline companies?
10.) List and describe the valuation multiples and their use inthe guideline public company method.
11) What are the pros and cons of using the guideline publiccompany method?
12.) Discuss the Merger and Acquisition (Transaction)Method.
13.) What tools can be used for the M and A method?
14.) What are the pros and cons of using the M and A method?

Answer & Explanation Solved by verified expert

3.8 Ratings (358 Votes)

1 A forecast is the responsible partys assumptions reflecting the conditions it expects to exist and the course of action it expects to take Basically it is an assumption On the other hand a projection is sometimes prepared to present one or more hypothetical courses of action for evaluation as in response to a question 2 The factors that should be reviewed when evaluating a forecast are the relevance and availability of historical data the degree of accuracy desirable the time period to be forecast the cost benefit of the forecast to the company and the time available for making the analysis It is because the company should make best use of the available data and reduce cost 3 The steps involved in preparing a forecast are as follows i Define Assumptions The first step in the forecasting process is to define the fundamental issues impacting the forecast iiGather Information All kind of data is collected to support the forecast process iii Preliminary analysis The analysis should include an examination of historical data and relevant economic conditions iv Select Methods Determine the quantitative or qualitative forecasting methods that will be used v Implement Methods See Answer

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