1. What is financial forecasting and why is it important? 2. why is working capital so...

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Finance

1. What is financial forecasting and why is it important?
2. why is working capital so important to a firm's continuedprofitability? There are three types of capital policies:
3. Explain how a firm uses commercial paper as a short-termfinancing source and explain the disadvantage of using this form offinancing>
Disadvantages:
a.
b.

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Financial forecasting its importance A financial forecast is defined as a financial plan or budget for a business It is derived by estimating two things it is nothing but the income that the business is expected to receive expenses that it is expected to pay However it is not an easy task to make such estimation but some decent guesses can be made to make up a financial forecast It is important for the following reasons It helps the business to plan ahead For example in case of an airline See Answer

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1. What is financial forecasting and why is it important?2. why is working capital so important to a firm's continuedprofitability? There are three types of capital policies:3. Explain how a firm uses commercial paper as a short-termfinancing source and explain the disadvantage of using this form offinancing>Disadvantages:a.b.