(19BII) "Sensitivity" Financial Forecasting

[SlideRule]

Since the HP-19BII seems to have, at the very least, a modest
following/interest in the MoHPC forum, I submit two extracts,
[attachment=6409] (pg-226)
from two separate publications [attachment=6410] (pg 142)

{complete with description/explanation} deploying the Modified Percent
of Sales Method based on the following two equations;
(F) Financial Needs Formula
F = A/S(ΔS) + ΔNFA - LI /S(ΔS) -P(S)(1-d) + (RΔS):
&
(E) Projected Percent of Sales Externally Financed Formula
E = (A/S - L1/S) - (P/g)(1+g)(1-d) + (R/ΔS):
where
F = Cumulative financial
A = Projected spontaneous assets
S = Projected sales
ΔS = Change in sales
ΔNFA = Change in net fixed assets
L1 = Spontaneous liabilities
P = Projected profit margin (%)
D = Dividend payout rate
R = Debt maturities
T = Targeted growth rate
L = Leverage
g = Sales growth rate

The two equations are interconnected, since they both are derived from the
popular IAS and FAS cash flow statement.

BEST!
SlideRule