Overview
In the Template Spreadsheet Download Template Spreadsheetyou are provided with the FY2025 income statement for Alpha Company and some additional assumptions. You are required to prepare the FY 2026 forecasted income statement for the company using only the provided information.
Part 2:
Prepare a memo to the leadership team of Alpha Corporation addressing the following:
Describe the process used to develop the projected revenue and expense statement, emphasizing the role of key assumptions in shaping the forecast. Avoid detailing the specific calculations, as these will be demonstrated through your Excel formulas.
Evaluate at least two alternative approaches that could have been applied to create the forecast. Include the advantages and disadvantages of each, as well as any risks or inaccuracies that might arise from their use. Should just one set of assumptions be used for the forecast or should multiple assumptions be used (for instance, an increase in net sales by 2.5%, 3%, and 1%)? What would be the advantage or disadvantage of multiple assumptions?
Identify at least one qualitative forecasting technique that could enhance the forecast’s credibility for strategic decision-making, and explain how it could be integrated.
Your memo is required to be a five to seven pages in length. Your memo should be submitted as the body of your paper. In addition, you are required to include properly formatted title and references pages and conform to APA guidelines. Include at least three credible references in addition to the course textbook. The CSU Global Library is a good place to find these references.