FINANCIAL FORECASTING

Financial Forecasting: The prime responsibility of financial manager is to see that an adequate supply of cash is on hand at the proper time for smooth How of firm's activities.

Since cash-in-flow and cash out-flow- both are closely related 0) the volume of sale,, it requires financial forecasting. Thus the estimation of the prospective inflow and outflow of cash in the next quarter or year is necessary to maintain the liquidity in the funds.

INVESTMENT DECISIONS

The investment decision is the row important aspect of executive functions of financial executive. In investment decisions, the allocation of catpital to various investment proposals are made in the order of their profitability.

The financial manager is instrumental in allocating capital to these assets by virtue of his involvement in capital budgeting„ Each investment decision necessarily involves risk and a financial manager assists in evaluating the various proposals under uncertainty with the processes capital budgeting.

LIQUIDITY vs PROFITABILITY | MAXIMISATION OF RETURN | WEALTH MAXIMISATION | Constraints - Policy Decisions - Profitability | IMPLICATIONS OF WEALTH MAXIMISATION | Suppliers of Loan Capital | RELEVANCE OF WEALTH MAXIMISATION | Retaining earning and Undistributed profits | Managerial finance function | Functions of Financial Management | FINANCIAL FORECASTING | MANAGEMENT OF CORPORATION ASSET STRUCTURE | THE MANAGEMENT OF INCOME | MANAGEMENT OF CASH | DECIDING OUT NEW SOURCES OF FINANCE | CONTACT AND CARRY NEGOTIATIONS FOR NEW FINANCING | ANALYSIS AND APPRAISAL OF FINANCIAL PERFORMANCE | INCIDENTAL OR ROUTINE FUNCTIONS | CAPITAL BUDGETING DECISION | CURRENT ASSET MANAGEMENT | Maximisation of Share Value | RESPONSIBILITIES OF FINANCIAL MANAGEMENT IN THE FIRM | Functions of the Treasurer and Controller | TASKS OF FINANCIAL MANAGEMENT | CHALLENGES OF FINANCIAL MANAGEMENT | Gross and Net Savings | Household Savings | How to politely win when credit disputes and problems arise