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Financial forecasts are projections of a company's future financial performance based on historical data, market trends, and management's judgment. They typically include projected income statements, balance sheets, and cash flow statements.
Financial forecasts are an essential part of a company's strategic planning and decision-making process. They help companies anticipate future financial outcomes, plan for growth, manage cash flow, and assess the financial feasibility of strategic initiatives. However, they are based on assumptions and estimates, and actual results may vary.
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