ABSTRACT

Chapter 3 adds to our planning toolbox with explanations of budgeting and planning:

Cash ow•

Cash budgeting•

Sustainable growth•

Generation of • pro forma nancial statements

We assume you have some familiarity with the tools of nancial analysis that we will discuss, and so we present the methods here as a refresher. More detailed discussions can be found in Brigham and Ehrhardt (2008), Foster (1986), Helfert (1991), and Higgins (1996).