1. Capital budgets
2. Operational budgets
3. Cash flow forecasts
4. Pro-forma financial statements
1. A capital budget is a plan for expenditures for fixed assets such as equipment and facilities. It may include acquisition costs, building costs, and major repair costs, beyond routine maintenance. A capital budget is a part of a comprehensive annual operating or business plan.
2. A short-term budget, usually prepared annually, based on estimates of income and expenses associated with the organizations operations. Items such as administration, labor, manufacturing costs, marketing and any other production associated costs are included.
3. Cash flow forecasting is the modeling of a company or entity's future financial liquidity over a specific timeframe. Cash usually refers to the company's total bank balances, but often what is forecast is treasury position which is cash plus short-term investments minus short-term debt. Cash flow is the change in cash or treasury position from one period to the next period.
4. Pro-forma finacial statements is a projected or estimated financial statement that attempts to present a reasonably accurate idea of what a firm's financial situation would be if the present trends continue or certain assumptions hold true. Pro forma statements are used routinely in preparing 'what if' scenarios, formulating business plans, estimating cash requirements, or when submitting financing proposals.
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