Whenever there is a need to plan for the future or evaluate alternative plans
for company operations, management can use projected financial statements
as a tool in making decisions.
Projected Financial Statemments can be used by management:
- To obtain financing.
- To show potential investors how the additional capital invested will
result in an
increase in the value of the company over time or provide
a return on the
investment from operations.
- To assist with decisions regarding expansion, investing in property,
starting a new
line of business or terminating an existing product or service.