Financial Forecasting (120 points)
There are two parts to this assignment.
Part 1:
In this assignment, you will conduct a financial forecast for a healthcare organizations external funding. After you conduct that forecast, you will discuss the learning concepts from the module.
ABC Company is a small manufacturer of ultrasound equipment. The Year 1 financial statements for the firm are shown below:
Balance Sheet as of December 31, Year 1 (thousands of SAR)
  
   Cash

90,000
 
Receivables

180,000
 
Inventories

360,000
 
Total current assets

630,000
 
Net fixed assets

720,000
 
Total assets

1,350,000
  
Accounts payable

180,000
 
Notes payable

78,000
 
Accruals

90,000
 
Total current   liabilities

348,000
  
Common stock

900,000
 
Retained earnings

102,000
 
Total liabilities &   equity

1,350,000
Income Statement for Year 1 (thousands of SAR)
  
   Sales

1,800,000
 
Operating costs

1,639,860
  
Earnings before   interest and taxes

160,140
 
Interest

10,140
 
Earnings before taxes

150,000
 
Taxes (20%)

30,000
 
Net income

120,000
 
Dividends (60%)

72,000
 
Addition to retained   earnings

48,000
Suppose that in Year 2, sales only increase by 8 percent over Year 1 sales. Construct the pro forma financial statements using the constant growth method. Assume the firm operated at full capacity in Year 1. What will be the external funding requirement?
Part 2:
How does trend analysis help in the forecasting revenue, expenses and profit on the Profit and Loss Statement for an organization? Explain whether forecasting difficulties depend on the type of healthcare organization, such as a hospital or an outpatient clinic. Additionally, explain what impact a growing population within the Kingdom of Saudi Arabia will have on the ability to forecast utilization of assets (on the Balance Sheet) effectively.
Express the financial concepts of this course such as revenue payment methods, financial risk, debt, equity, capital acquisition, financial forecasting, and the revenue cycle.
Your paper should meet the following structural requirements:

The paper should be 6-8 pages in length, not including      the cover sheet and reference page.
You must show all your calculations for credit. Your      calculations for this assignment must be submitted as an Excel file,      identified as Appendix A, and included as part of the Word document      submission.
Format the paper according to APA and Saudi Electronic      University writing standards.
Provide support for your statements with in-text      citations from a minimum of two scholarly articles.
Three of these sources may be from the class readings      and the textbook, but three must be external and come from peer-reviewed      journals.
The Saudi Digital Library is a good place to find these      references.