Work

Financial Statement Forecasting and Financing

Year: 2024

Type: article

Abstract: Using a “plug” figure or “slack term” within a pro forma analysis is the standard method to allow a forecasted balance sheet to have assets equal to liabilities and equity. Seemingly, different types of plug values are demonstrated to be mathematically linked to each other. Further, by exploring cash as a plug figure, a solution emerges for a “target revenue growth rate” in which cash is not depleted. If a private equity venture can generate revenue growth above the target revenue growth rate, cash will accumulate and improve the return on the private equity investment.

Source: Journal of Accounting and Finance

DOI: 10.33423/jaf.v24i5.7361

Authors: Tom Arnold, Kenneth P. Moon

Institutions: University of Richmond, Texas State University

Language: English

Topic: Financial Analysis and Corporate Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: bronze

OpenAlex ID: W4404424451

FWCI:

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