Horti-Business Management (2+0)

Balance Sheet Forecasting (Pro-forma Balance Sheet)

• This involves estimating asset levels to support the forecasted sales targets. For example, if the higher sales targets would necessitate opening more retail outlets, then necessarily, investments in fixed assets are a must. Moreover, changes in the funding mix (i.e., a higher level of long-term loans vs. short-term borrowings) may also occur.