Estimate CoGS expenses and SG&A expenses Total costs, (TC)— Variable Cost per Dollar of Sales= Total Variable Cost = Variable costs (VC)— Total Fixed Cost = Fixed costs (FC)— deprecation b/c it doesn't dictate Choose a preliminary financial policy and use it to forecast the financial items Financing deficit

1. Estimate CoGS expenses and SG&A expenses

separately

2. Total costs, (TC)—

sum of fixed costs (FC) and variable costs

3. Variable Cost per Dollar of Sales=

Change in Cost of Products Sold/Change in Sales

4. Total Variable Cost =

Variable Cost per Dollar of Sales × Sales

5. Variable costs (VC)—

costs that change as the volume of sales changes
(direct labor and materials, for example)

6. Total Fixed Cost =

Total Cost of Product Sold - Total Variable Cost

7. Fixed costs (FC)—

costs that are constant over a period regardless of the level of sales

8. deprecation b/c it doesn't dictate

sales or EBIT or interest exp.

9. Choose a preliminary financial policy and use it to forecast the financial items

Project Financial Assets, Liabilities, CE Capital
Project Income Before Taxes (including effect of nonrecurring Gains/Losses)

10. Financing deficit

if additional financing is less than additional assets.