Corporate Finance #3 Forecasting & Budgeting

Name: Corporate Finance #3 Forecasting & Budgeting
Rating: 4.3 (326 reviews)

Master Financial Forecasting & Budgeting: Optimize Planning & Decision-Making with Accurate Projections & Strategies

Created byRobert (Bob) Steele

Last updated 7/2026

English

English [Auto],

What you'll learn

Define the concept of financial forecasting and explain its importance in financial planning.
Apply forecasting techniques to make accurate projections of future financial performance.
Analyze past financial statements to identify relevant data for forecasting and budgeting purposes.
Utilize Microsoft Excel to create and manipulate financial models for forecasting and budgeting.
Construct sales projections as a foundation for other budgeting components.
Develop a production plan based on sales projections to optimize resource allocation.
Prepare a capital budget by evaluating investment opportunities and estimating future cash flows.
Create a cash budget to ensure adequate cash flow management and liquidity.
Construct a budgeted income statement to assess projected financial performance.
Develop a projected balance sheet to evaluate the expected financial position at the end of the budgeted period.

Course content

3 sections • 35 lectures • 8h 29m total length

405 Forecasting Objectives9:20
Apply forecasting objectives to build pro forma income statements, cash budgets, and pro forma balance sheets by linking sales projections to production plans and financing decisions.
410 Pro Forma Income Statement13:41
Explore pro forma income statements built from sales projections and the production plan, detailing costs of goods sold, materials, labor, overhead, ending inventory, and inventory flow assumptions.
415 Cash Budget16:08
Learn to build a cash budget within the budgeting process by linking sales projections, production and purchasing plans, accounts receivable and payable, and capital expenditures to pro forma statements.
420 Pro Forma Balance Sheet3:50
Build a pro forma balance sheet by aligning sales projections, production budgets, income statements, and cash budgets to forecast the ending balance.
425 Percent of Sales Method10:49
Apply the percent of sales method to project assets, liabilities, and equity as sales grow, determine required new funds, and assess capacity constraints in growth scenarios.

OneNote Resource0:01
414 Sales Projection – Multiple Scenarios8:20
Explore how to project sales using multiple scenarios by computing expected value with weighted averages based on scenario probabilities, including unit sales and pricing.
416 Estimated Net Sales10:43
Explore a OneNote practice problem on estimated net sales, starting from prior year data, applying a 25% rise in unit sales and a 21% price increase, account for 8% returns.
418 Projected Units to be Produced11:44
Learn to calculate units to be produced from projected unit sales, desired ending inventory, and beginning inventory in examples, using ending inventory as a percent of sales or beginning inventory.
423 Calculate Cost of Goods Sold Using FIFO & LIFO20:37
Explore cost of goods sold using fifo and lifo, compare flow assumptions, and see their effects on ending inventory and net income in a OneNote practice problem.
424 Calculate Cost of Ending Inventory LIFO & FIFO25:56
Explore how ending inventory costs vary under LIFO and FIFO, and compute cost of goods sold and ending inventory from beginning and current-period units.
427 Schedule of Cash Receipts8:24
Learn to construct a cash receipts schedule from credit sales, compute monthly collections, and project future cash inflows using accounts receivable data in a standardized Excel worksheet.
428 Schedule of Cash Receipts – Multiple Scenarios18:22
Analyze a practice problem on a schedule of cash receipts with multiple scenarios, linking sales projections to cash inflows, accounts receivable collection patterns, and uncollectible percentages.
430 Schedule of Cash Payments7:48
Work through a OneNote practice problem. Build a cash payments schedule, tracking accounts payable for material purchases paid one month after purchase, including labor costs and fixed overhead for January–April.
431 Schedule of Cash Payments – More Complex14:50
Develop a cash flow forecast by building a complex schedule of cash payments that links next-month sales to materials purchases, accounts payable payments, labor, overhead, interest, and commissions.
432 Production Schedule & Schedule of Cash Payments13:07
Work through a production schedule and schedule of cash payments in corporate finance, using projected sales, ending inventory, unit costs, and staggered accounts payable from February through May.
434 Cash Budget & Cash Receipts Schedule13:56
Analyze a cash budget and cash receipts schedule from a practice problem. Calculate cash inflows from cash and credit sales and maintain cash balance with a line of credit.
435 Cash Budget, Cash Receipts Schedule, Cash Payments Schedule28:15
Develop and analyze a cash receipts, cash payments, and cash budget for June through September, calculating cash sales, credit collections, purchases, labor, taxes, dividends, interest, and a $300,000 capital outlay.
437 Required New Fund Formula All Balance Sheet Accounts Change Relative to Sale16:45
Apply the required new fund formula to forecast financing needs for 25% sales growth, breaking down asset, liability, and equity changes at full capacity.
438 Required New Fund Formula – Current Assets & Liabilities Change Relative to16:23
Apply the required new fund formula with current assets and current liabilities changing relative to sales to determine external financing needs using the percent of sales method.

414 Sales Projection – Multiple Scenarios4:14
Use Excel to project future sales by analyzing three scenarios, calculating each scenario's sales value, assigning probabilities, and summing the weighted values to obtain the expected sales.
416 Estimated Net Sales12:16
Learn how to model estimated net sales in Excel for corporate finance, using prior year units and price, 21% price increase, and 8% returns across two tabs.
418 Projected Units to be Produced14:39
Apply Excel to calculate units to be produced from projected sales and ending inventory, using beginning inventory and percent of sales to create a cushion for demand.
421 Calculate Cost of Goods Sold Using FIFO10:47
Work through an excel practice problem to calculate cost of goods sold using fifo, and apply the first in, first out flow assumption to ending inventory.
423 Calculate Cost of Goods Sold Using LIFO & FIFO16:00
Explore calculating cost of goods sold using FIFO and LIFO in an Excel practice problem, comparing ending inventory and net income under rising prices and flow assumptions.
427 Schedule of Cash Receipts8:44
Explore a corporate finance excel practice problem building a schedule of cash receipts for the fourth quarter, using credit sales, accounts receivable, and 45% and 50% collection patterns.
428 Schedule of Cash Receipts – Multiple Scenarios22:53
Forecast cash receipts in Excel for corporate finance, using multiple scenarios to project March–August collections from sales on account and manage accounts receivable with running balances.
430 Schedule of Cash Payments8:11
Practice problem in Excel shows building a schedule of cash payments for January–April, including materials purchases on account, accounts payable, labor costs, and overhead, highlighting cash vs accrual timing.
431 Schedule of Cash Payments – More Complex20:35
Explore a complex cash payments schedule in Excel for forecasting and budgeting, calculating material purchases on next-month sales, in-month and following-month payments, labor costs, fixed costs, interest payments, and commissions.
432 Production Schedule & Schedule of Cash Payments13:29
Learn to build an Excel-based production schedule and cash payments forecast for March–May, including ending inventory rules (2.5x next month), materials and labor costs, fixed overhead, and May dividends.
434 Cash Budget & Cash Receipts Schedule17:27
Explore a cash budget and cash receipts schedule in Excel, modeling cash and credit sales, collections, minimum cash balance, and a line of credit to manage ending cash balance.
435 Cash Budget, Cash Receipts Schedule, Cash Payments Schedule28:03
Create a cash budget for January–March in Excel, forecasting cash receipts and payments, managing credit sales, accounts payable timing, and line-of-credit to maintain a 125,000 minimum balance.
436 Cash Receipts, Cash Payments, & Cash Budget31:27
437 Required New Fund Formula – All Balance Sheet Accounts Change Relative to Sa14:22
438 Required New Fund Formula – Current Assets & Liabilities Change Relative to17:14
Apply the required new fund formula in Excel to project financing needs from sales changes, using current assets and current liabilities relative to sales, and integrate profit margin and payout concepts.

Requirements

Basic understanding of financial statements, including familiarity with balance sheets, income statements, and statement of cash flows.
Access to a computer or laptop with internet connectivity to access course materials and complete practice exercises.
Eagerness to learn and apply financial forecasting and budgeting techniques in practical scenarios.
Openness to hands-on practice and willingness to work with Microsoft Excel or similar software to create financial models and projections.
Curiosity and a desire to enhance financial planning skills and make informed decisions based on accurate projections.

Description

In this comprehensive course, we will delve into the fundamental concepts of forecasting and budgeting from a finance perspective, equipping you with the skills to make informed financial decisions based on future projections.

Throughout the course, we will provide numerous example problems, including both presentation-based scenarios and hands-on exercises using Microsoft Excel worksheets. Each Excel worksheet problem will be accompanied by a downloadable worksheet with step-by-step instructional videos. The worksheets will include at least two tabs—one with the answer and the other preformatted to facilitate a structured, interactive learning experience.

To effectively forecast and budget, we begin by using past financial statements as a starting point. These statements, including the balance sheet, income statement, and statement of cash flows, provide valuable insights into historical performance. From there, we consider various changes and factors that may impact the future, such as planned initiatives and shifts in the economy and business environment.

In constructing our budgets, we follow a systematic order, starting with sales projections as the foundation for other projections. We then progress to the production plan, capital budget, cash budget, and budgeted income statement. The budgeted income statement serves as our primary performance statement, guiding financial decision-making.

Moreover, we explore the process of creating a projected balance sheet—a statement that represents our expected financial position at the end of the budgeted time frame. By integrating projected income statements and beginning balance sheets, we can gain a comprehensive understanding of future financial expectations.

Join us on this dynamic journey to master forecasting and budgeting in finance. Enroll today to develop practical skills in financial planning, learn effective forecasting techniques, and gain proficiency in budgeting strategies. By the end of the course, you will be equipped to make informed financial decisions based on sound projections and navigate the future with confidence.

Who this course is for:

Finance professionals and analysts who want to enhance their financial forecasting and budgeting skills to make more accurate projections and informed financial decisions.
Accounting professionals seeking to expand their knowledge and capabilities in financial planning and budgeting processes.
Business owners and entrepreneurs who want to develop the skills to create effective financial forecasts and budgets for their organizations.
Financial managers and executives involved in financial planning and decision-making, looking to improve their proficiency in forecasting and budgeting techniques.
Students pursuing degrees or certifications in finance, accounting, or related fields, who want to gain practical skills in financial forecasting and budgeting.
Anyone with an interest in financial forecasting and budgeting, seeking to understand the techniques and strategies used to make informed financial decisions.

Corporate Finance #3 Forecasting & Budgeting

What you'll learn

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Course content

Introduction5 lectures • 54min

Practice Probs - Forecasting & Budgeting15 lectures • 3hr 35min

Excel Probs - Forecasting & Budgeting15 lectures • 4hr

Requirements

Description

Who this course is for: