“Sales Forecasting and Cash Flow”

  

An important stepin developing a projected (pro forma) income statement is to create a  sales forecast and calculate anticipated revenue for the business. Imagineyou are creating a business—develop a sales forecast and estimate revenue  for the first year of operation, and describe the process you used to   arrive at your estimates.

The three (3) primary causes of cash flow problems in a business are accounts receivable, accounts payable, and inventory. Imagine you are creating a  business—identify one (1) cause of cash flow problems that you believe      will be the most challenging for your company. Next, discuss thestrategies you will use to mitigate problems in this area.

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