Respond to the following in a minimum of 175 words: Financial planning and forecasting require a financial plan. To form a plan, we start with the idea of forecasting expected sales. The additional...

Respond to the following in a minimum of 175 words:

Financial planning and forecasting require a financial plan. To form a plan, we start with the idea of forecasting expected sales. The additional increase in sales will stimulate growth in fixed and current assets, as well as generate “spontaneous” current liabilities. A firm needs to plan for the growth in sales so it can plan for the expected additional funds needed to fuel expected growth. Explain why we need to use an accurate sales forecast to determine additional funds needed (AFN). Support your response with an example.