FIN-7015 v1

Crum, M., & Rayhorn, C. (2019). Using Monte Carlo Simulation for pro forma financial statements. Journal of Accounting & Finance (2158-3625), 19 (5), 29–40.
This is a quick look at using the Monte Carlo technique in developing proforma financial statements.

Melancon, M. V., & Babin, L. A. (2012). Sales forecasting: Teaching with naïve approaches. International Journal of Education Research, 7 (1), 28–39.
In order to have a relatively decent income statement projection, there needs to be an emphasis on the accuracy of sales projections. This article provides some insight.

Demers, E. (2007). Discussion of “biases in multi-year management financial forecasts: Evidence from private venture-backed U.S. companies.” Review of Accounting Studies, 12 (2/3), 217–225.
After reviewing this article, the student will gain insight into some of the challenges with multi-year projections, especially because of external factors.

Hovland, T. (2019). Effective financial projections for a startup. Journal of Accountancy, 227(3), 1.
This article provides a practical framework of financial projections that are typically used in a startup business, and if expanded, can be used in small cap firm.