Objectives On completion of this tutorial, you will be able to:

• Recognize how forecasting provides a forward-looking view and how timing impacts the value of financial statement analysis
• Identify the importance of having clear assumptions, robust revenue projections, and well-defined relationships that underlie forecasts
• Construct a forecast income statement, balance sheet, and statement of cash flows
• Recognize the importance of stress testing financial forecasts

Tutorial Overview This tutorial looks at the importance of financial forecasting in overcoming the backward-looking nature of audited financial statements. The tutorial also highlights the need for clear assumptions when forecasting, the role of stress testing, and the common pitfalls that analysts need to watch out for when building their forecasts. Prerequisite Knowledge Credit Analysis - Performance & Other Measures Tutorial Level: Intermediate Tutorial Duration: 75 minutes