Answer:
Q1. Working capital accounts : inventory is forecasted using previous years data, trends, how much goods will be purchased, produced, sold, planned promotions , production cycles and ratios related to inventory.
Accounts Receivables are forecasted using how much products will be sold on credit, debtors collection patterns to determine balances at the end of the year and ratios relating to accounts receivables.
Accounts payable are forecasted using creditors payment patterns, how much goods will be purchased on credit.
Q2 EBIT is forecasted by forecasting the revenues and Expenses.
Q3 interest expense is forecasted using projected debt multiple by projected interest rate, and also taking into account projected repayments and additions of debt.
Q4 PPE is forecasted adding projected additions and subtracting disposals then get the projected balance at the end of the year.
Q5 long term debt if projected by forecasting any debt needed and any repayments of debt
Q6 Stockholder's equity is forecasted by using the forecasted retained earnings from profits and by forecasting any capital raises or repurchase of company shares. Or can be forecasted by taking the forecasted assets subtracting forecasted liabilities.
Q7 EFN comes from the need to grow and financing that growth. EFN stands for External Financing Needed and is the difference between the growth (Asset section) and the funds in retained earnings( equity and liability section)
EFN is first forecasted and the forecast means the business has space for growth or not.
Explanation:
