Herramientas de Proyecciones y Proyecciones de los Estados Financieros

This is a teaching material for a module of Financial analysis at Universidad Tecnológica de Bolivar. The educational material was developed with Professor Ricardo Davila from Universidad Javeriana, Bogota, Colombia. The written material has been modified several times using the feedback from students and other users. This material is an unpublished one.This chapter presents some forecasting tools and a step by step procedure to forecast financial statements without plugs and without circularity. We include the effect of price demand elasticity and the effect of accounts receivables policy on growth. The basic idea is to perform a financial management procedure for increasing value and making forward looking financial management and analysis. We propose a break-even point analysis in a dynamical fashion. When making forecasted financial statements the break-even analysis from one year is not totally independent from the previous break-even point. We find large differences between this and the traditional approach. We give detailed examples for each case.