Developing pro forma financial statements and cash flow forecasts depends heavily upon sales forecasts. Imagine you are a financial analyst working for a major stockbroker and you are trying to develop a one-year sales forecast for a major national department store. List five pieces of information you want to obtain to aid you in your forecast, explaining why this will aid you in your forecast.
Following is information that would be helpful to an analyst preparing a sales forecast for a national department store.
1. Have there been a substantial number of store closures as a result of the poor economy? When details are known, would the closures limit local or regional exposure, or completely eliminate exposure. What I mean by this is did the company close down all their stores in the western states, for example, or did they only consolidate stores in existing markets. That information would provide data to ...
The solution gives 5 clear points for the information that an analyst preparing a sales forecast would require in 331 words.