6:47 G5G 1. What is the financial planning process? Contrast long-term (strategic) financial plans with short-term (operating) financial plans. 2. Which three statements result as part of the short-term (operating) financial planning process? 3. What is the purpose of the cash budget? What role does the sales fore-cast play in its preparation? 4. Briefly describe the basic format of the cash budget 5. How can the two "bottom lines" of the cash budget be used to deter-mine the firm's short-term borrowing and investment requirements? 6. What is the cause of uncertainty in the cash budget, and what two techniques can be used to cope with this uncertainty? 7. What is the purpose of pro forma statements? What inputs are required for preparing them using the simplified approaches? 8. How is the percent-of-sales method used to prepare pro forma income statements? 9. Describe the judgmental approach for simplified preparation of the pro forma balance sheet. 10. What is the financial manager's objective in evaluating pro forma statements