1. Financial planning involves considering different outlooks on the future. This can be captured by preparing pro forma financial statements that reflect worst case, normal case and best case scenarios.
   1. What factors, both internal to the company and broader economic issues, should be considered when preparing proforma income statements the reflect:
      1. A worst case:

2. A normal case:

3. A best case:

b. How are the considerations and assumptions different when the planning horizon changes? In other words, how is planning for the short-term (the next year) different that planning for the long-term (2-5 years out)?