Forecasting For Publicly Traded Companies

2011 ◽  
Vol 7 (2) ◽  
Author(s):  
Fred Petro
Keyword(s):  
Cash Flow ◽  
Team Member ◽  
Balance Sheet ◽  
Annual Reports ◽  
Publicly Traded ◽  
Accounts Receivable ◽  
Publicly Traded Companies ◽  
Income Statement ◽  
History Of ◽  
One Year

This project is intended to teach students to apply the material covered in their first graduate accounting course. This is accomplished by applying the material to an actual company selected by each team. The project is described as follows: The project includes a computerized spreadsheet preparation of a master budget forecast for an actual publicly traded company for one year into the future. The dates depend upon when the annual reports are prepared for your company. The forecast begins the day following the last available published annual report. The forecast does not comprise any actual numbers regardless of when the actual annual or quarterly statements are prepared for the company selected. The actual balance sheet, income statement and statement of cash flow from the preceding year are included with the forecasted balance sheet, income statement and statement of cash flow. The company must have a physical inventory, and accounts receivable from sales. The company may not be one in which any team member(s) are employed. The forecast will include the following items: Introduction, including the history of the company and a description of the company plan and policies as given in the project, Sales budget (twelve months), Schedule of purchases (twelve months), Schedule of collection of credit sales (accounts receivable) and cash sales (twelve months), Cash budget (twelve months), An Income statement (for the current year and the projected year), A Balance sheet (for the current year and the projected year), A Statement of cash flow (for the current year and the projected year), Cost-profit-volume analysis (twelve months), and Conclusion and recommendations.

scholarly journals A One Year Forecasting Project For Publicly Traded Companies

2011 ◽  
Vol 4 (9) ◽  
pp. 73
Author(s):  
Fred Petro
Keyword(s):  
Cash Flow ◽  
Team Member ◽  
Balance Sheet ◽  
Annual Reports ◽  
Publicly Traded ◽  
Accounts Receivable ◽  
Publicly Traded Companies ◽  
Income Statement ◽  
History Of ◽  
One Year

This project is intended to teach students to apply the material covered in their first graduate accounting course. This is accomplished by applying the material to an actual company selected by each team. The project is described as follows: The project includes a computerized spreadsheet preparation of a master budget forecast for an actual publicly traded company for one year into the future. . The dates depend upon when the annual reports are prepared for your company. The forecast begins the day following the last available published annual report. The forecast does not comprise any actual numbers regardless of when the actual annual or quarterly statements are prepared for the company selected. The actual balance sheet, income statement and statement of cash flow from the preceding year are included with the forecasted balance sheet, income statement and statement of cash flow. The company must have a physical inventory, and accounts receivable from sales. The company may not be one in which any team member(s) are employed. The forecast will include the following items:1. Introduction, including the history of the company and a description of the company plan and policies as given in the project2. Sales budget (twelve months).3. Schedule of purchases (twelve months).4. Schedule of collection of credit sales (accounts receivable) and cash sales (twelve months).5. Cash budget (twelve months).6. An Income statement (for the current year and the projected year).7. A Balance sheet (for the current year and the projected year).8. A Statement of cash flow (for the current year and the projected year).9. Cost-profit-volume analysis (twelve months).10. Conclusion and recommendations

Analyzing the figures of consolidated statement of cash flows of the world's biggest publicly traded oil and gas corporations

2020 ◽  
Vol 19 (6) ◽  
pp. 1101-1120
Author(s):  
O.V. Shimko
Keyword(s):  
Public Sector ◽  
Cash Flow ◽  
Oil And Gas ◽  
Cash Flows ◽  
Annual Reports ◽  
Capital Expenditures ◽  
Publicly Traded ◽  
The Public ◽  
Statement Of Cash Flows ◽  
Oil And Gas Companies

Subject. The article investigates key figures disclosed in consolidated cash flow statements of 25 leading publicly traded oil and gas companies from 2006 to 2018. Objectives. The focus is on determining the current level of values of the main components of consolidated statement of cash flows prepared by leading publicly traded oil and gas companies, identifying key trends within the studied period and factors that led to any transformation. Methods. The study draws on methods of comparative and financial-economic analysis, as well as generalization of materials of consolidated cash flow statements. Results. The comprehensive analysis of annual reports of 25 oil and gas companies enabled to determine changes in the key figures and their relation in the structure of consolidated cash flow statements in the public sector of the industry. It also established main factors that contributed to the changes. Conclusions. In the period under study, I revealed an increase in cash from operating activities; established that capital expenditures in the public sector of the industry show an overall upward trend and depend on the level of oil prices. The analysis demonstrated that even integrated companies’ upstream segment prevail in the capital expenditures structure. The study also unveiled an increase in dividend payments, which, most of the time, exceeded free cash flows thus increasing the debt burden.

scholarly journals PENERAPAN PSAK NO. 2 TENTANG LAPORAN ARUS KAS DALAM PENGAMBILAN KEPUTUSAN PADA PERUM BULOG DIRVE SULUT DAN GORONTALO

2015 ◽  
Vol 13 (03) ◽  
Author(s):  
Fanesa Isalia Minanda Syaefudin ◽  
Jenny Morasa ◽  
Stanly Alexander
Keyword(s):  
Decision Making ◽  
Cash Flow ◽  
Balance Sheet ◽  
Financial Statements ◽  
Operating Cash Flow ◽  
Cash Flow Statement ◽  
Quantitative Descriptive ◽  
One Year ◽  
Finance Department ◽  
Real State

In the company’s Financial Statements is a means of consideration in decision making so that, componentsin the financial statements must betrue and correct. In thedecision making companies should use the cash Flow Statement because sometimes the income and balance sheet does not show the real state of corporate finance. The purposeof this study to determine the application of the Cash Flow Statement in accordance with SFAS No. 2 in corporate decision. This type of research is quantitative descriptive. The results showed, net cash provided by the company during the year has decreased compared to the previous year. This study uses the ratio analysisin corporate decision making. The Ratio of Operating Cash Flow to Total Liabilities can be used as basis for decision making in the company repay its total Liability for one year of operation. The Ratio of Cash Flow to Current Liabilities can be used as the basis of the decision making companies when measuring the company’s ability to pay Current Liabilities by Net Operating Cash Flow. The Ratio of Cash Flow to Sales companies measure the company’s ability to measure the company’s ability to obtain cash from to sale. Leaders should Perum Bulog particularly the finance department needs to implement the Cash Flow Statement as the basis of its analysis so that can know the financial situation and can be used as a basis for decision making of the company.

scholarly journals Cash flow disaggregation and prediction of cash flow

2017 ◽  
Vol 18 (4) ◽  
pp. 464-479 ◽  
Author(s):  
Ehsan Khansalar ◽  
Mohammad Namazi
Keyword(s):  
Cash Flow ◽  
Balance Sheet ◽  
Cash Flows ◽  
Prediction Errors ◽  
Content Type ◽  
Balance Sheets ◽  
Income Statement ◽  
Aggregated Model ◽  
Flow Components ◽  
Future Cash Flows

Purpose The purpose of this paper is to investigate the incremental information content of estimates of cash flow components in predicting future cash flows. Design/methodology/approach The authors examine whether the models incorporating components of operating cash flow from income statements and balance sheets using the direct method are associated with smaller prediction errors than the models incorporating core and non-core cash flow. Findings Using data from US and UK firms and multiple regression analysis, the authors find that around 60 per cent of a current year’s cash flow will persist into the next period’s cash flows, and that income statement and balance sheet variables persist similarly. The explanatory power and predictive ability of disaggregated cash flow models are superior to that of an aggregated model, and further disaggregating previously applied core and non-core cash flows provides incremental information about income statement and balance sheet items that enhances prediction of future cash flows. Disaggregated models and their components produce lower out-of-sample prediction errors than an aggregated model. Research limitations/implications This study improves our appreciation of the behaviour of cash flow components and confirms the need for detailed cash flow information in accordance with the articulation of financial statements. Practical implications The findings are relevant to investors and analysts in predicting future cash flows and to regulators with respect to disclosure requirements and recommendations. Social implications The findings are also relevant to financial statement users interested in better predicting a firm’s future cash flows and thereby, its firm’s value. Originality/value This paper contributes to the existing literature by further disaggregating cash flow items into their underlying items from income statements and balance sheets.

Teuer Furniture (A): Discounted Cash Flow Valuation

2017 ◽  
pp. 1-23
Author(s):  
Mitchell A. Petersen
Keyword(s):  
Cash Flow ◽  
Firm Value ◽  
Capital Investment ◽  
Balance Sheet ◽  
The United States ◽  
List Type ◽  
Discounted Cash Flow ◽  
Firm Level ◽  
Income Statement ◽  
Pro Forma

Teuer Furniture is a privately owned, moderately sized chain of upscale home furnishing showrooms in the United States. The firm survived the economic recession and by the end of 2012, it has regained its financial footing. Now that the firm is more secure financially, some of its long-term investors have asked to cash out their investments. This will be the first time that Teuer has repurchased its equity; the company has paid dividends since 2009. Chief financial officer Jennifer Jerabek and her team have been given the task of valuing Teuer using a discounted cash flow approach. The discount rate is given in the case, and the students need to build a pro forma income statement, balance sheet, and cash flow statement and then calculate a per-share value for Teuer. Estimate firm value using a discounted cash flow approach Construct firm-level estimates of the pro forma income statement, balance sheet, and cash flow from assets based on store-level estimates Recognize how forecasts of revenues, costs, and capital investment are constructed, how the individual estimates relate to each other, and how the forecasts depend upon the underlying economics of the business Evaluate and defend the validity of the firm’s forecasts and the valuation model

scholarly journals Disclosure Practices of Mobile Telecommunication Companies with Special Reference to Grameenphone Ltd.

2013 ◽  
Vol 2 (1) ◽  
pp. 61-75
Author(s):  
Taposh Kumar Neogy
Keyword(s):  
Special Reference ◽  
Balance Sheet ◽  
Annual Reports ◽  
Mobile Telecommunication ◽  
Classification Code ◽  
Income Statement ◽  
Significant Difference ◽  
Measurement And Analysis ◽  
Telecommunication Companies ◽  
The Difference

This discussion highlights on the measurement and analysis of the nature of disclosure of the Grameenphone Ltd. during the period under study.  The annual reports of the Grameenphone Ltd. were analyzed to determine the extent to which contained the items of information included in the disclosure index of the Grameenphone Ltd. during the period under study. An index of disclosure has been constructed to measure the extent of disclosure of Grameenphone Ltd. For analyzing the nature of disclosure of Grameenphone Ltd. researcher have analyzed the different part of disclosure index such as company profile items, accounting policy items, balances sheet assets items, balance sheet liabilities items and income statement items both debit and credit items. This study shows that the disclosure score of the Grameenphone Ltd. is satisfactory and there was significant and not significant difference in disclosure score between the difference years during the period under study of various items of disclosure index. GEL Classification Code: M41; M48

scholarly journals Integrated Reporting – a concept whose time has come

2011 ◽  
Vol 85 (11) ◽  
pp. 535-536 ◽  
Author(s):  
Mervyn E. King
Keyword(s):  
Great Depression ◽  
Balance Sheet ◽  
Financial Statements ◽  
The United States ◽  
Income Taxation ◽  
Integrated Reporting ◽  
The Great Depression ◽  
Income Statement ◽  
History Of ◽  
Global Events

85E JAARGANG NOVEMBER 535 Thema The history of accountancy establishes that changes to reporting standards and practices occurred as a result of global events or crises. It was said that one of the causes of the Great Depression of the 1930s was the value of assets on the basis of mark to market. This type of valuation was consequently abandoned in some jurisdictions, but was retained in others. The great depression also resulted in the implementation of generally accepted standards of accounting in the United States. It also led to stock issues as a leading method of financing expansion. As stockholders, rather than bankers, became the primary audience of financial statements, the income statement began to take centre stage over the balance sheet. Other factors, such as income taxation and cost accounting, shifted the focus to revenue and profit.

scholarly journals A Generic Model Of Predicting Probability Of Success-Distress Of An Organization: A Logistic Regression Analysis

2018 ◽  
Vol 34 (1) ◽  
pp. 169-182
Author(s):  
Shyam Bhandari ◽  
Anna J. Johnson-Syder
Keyword(s):  
Cash Flow ◽  
Prediction Models ◽  
Balance Sheet ◽  
Bankruptcy Prediction ◽  
Generic Model ◽  
Income Statement ◽  
Probability Of Success ◽  
Cash Flow Statement ◽  
Firm Data ◽  
Financial Issues

Many bankruptcy prediction models have been created over the years using a mix of variables derived mostly from accrual-based accounting statements and were industry specific. The primary issue with using a model comprised of accrual-based variables is that firm management can manipulate different components and make the balance sheet and income statement misleading (Wanuga 2006). Thus, firms appear financially healthy yet unable to meet the day-to-day cash flow needs of the firm; these financial issues are less likely to be hidden in the cash flow statement (Sharma 2001). In this study, we use a binary regression model with theoretically supported variables obtained from the cash flow statement to forecast firm success versus distress. Of particular interest, we examine firms representing 85 industries using firm data during and immediately following the greatest recession in United States history (Fieldhouse 2014; Lee 2014). The model is generic in the sense that it can be used to predict the probability of success-distress of any entity using the three major financial statements. We find that the overall model correctly classifies organizations 90.290 percent of the time.

scholarly journals Ways to improve minimization of receivables and payments and management by them

2020 ◽  
pp. 26-29
Author(s):  
Olha BONDARENKO ◽  
Iryna MASIUK
Keyword(s):  
Financial Performance ◽  
Cash Flow ◽  
Current Account ◽  
Balance Sheet ◽  
Large Percentage ◽  
Economic Environment ◽  
Accounts Receivable ◽  
Optimal Ratio ◽  
Accounts Payable ◽  
Negative Effect

Introduction. To date, every entity has faced accounts receivable and payable. There are times when debt becomes overdue. An entity cannot repay its debt because debtors do not repay their debt. In fact, receivables and payables are closely linked, which in turn has a negative effect on the balance sheet and financial performance of any counterparty. This article discusses cases of arrears and ways of overcoming (reducing) accounts receivable and payables. The purpose of the paper is to study the factors that influence the increase in accounts receivable and payable within the internal and external activities of the enterprise. Results. In today's economic environment, a large number of Ukrainian enterprises went bankrupt and liquidated because they were unable to pay their debt to creditors. Also this situation arose due to a certain amount of cash, which was in circulation and in time did not enter the current account of the enterprise for payment of accounts payable. On the balance sheet receivables and payables account for a large percentage of both their and others' debt. We'll look at how and under what conditions debt can be reduced. Conclusion. It is advisable to balance receivables and payables in order to control the debt at the enterprise. The constant cash flow should not stop. The debt of the debtors goes to pay off the debt to the creditors. The optimal ratio is when the accounts payable exceeds accounts receivable by 10-20%.

scholarly journals ANALYSIS OF FINANCIAL STATEMENTS PERTAMINA 2017

2020 ◽  
Vol 6 (9) ◽  
pp. 68-75
Author(s):  
Agus Jamaludin ◽  
Nahason Sihotangand ◽  
Firdaus Budhy Saputro
Keyword(s):  
Balance Sheet ◽  
Financial Statements ◽  
Profit Margin ◽  
Total Asset ◽  
Return On Equity ◽  
Accounts Receivable ◽  
Total Debt ◽  
Library Research ◽  
Income Statement ◽  
Tangible Asset

This study was obtained from the PT. Pertamina Balance Sheet and Profit Report in 2017, thenthe title is: Analysis of Pertamina's Financial Statements. The goal is to find out theperformance of PT Pertamina. This research was obtained from PT Pertamina's Balance Sheetand Income Statement. in 2018, the title is: Analysis of Pertamina's Financial Statements. Theaim is to find out the performance of Pertamina in terms of liquidity, solvency, activities andprofitability. The research method is Library Research by exposing existing data in the form ofBalance Sheet and Income reports via the internet where the data are in the form of quantitativedata and in the form of descriptive. Financial statement analysis is performed to determine thecompany's financial performance, can also be used as a reference in making decisions thataffect the company's future. The result is that liquidity: current ratio = 1.336, Quick ratio =11.221.049.9, cash ratio = 0.543 and working capital = 0.077. The solvability is: total debt toequity ratio = 2.63, total debt to total asset ratio = 0.625, long term to total asset ratio = 1.66,Tangible Asset dept coverage = 1.94, Time interest earned Ratio = 0.064. Its activities are: Totalasset turnover = 0.256, accounts receivable turnover = 2.67, accounts receivable collectionperiod = 134.78, inventory turnover = 0, fixed assets turnover = 0.370. While the profitabilityare: Gross profit Margin = 1, Net Profit Margin = 0.099, operational profit Margin = 0.141,Return on Investment = 0.020 and return on equity = 0.07.

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