In this case, The Body Shop students were appointed as advisors to the administrator, Anita Roddick. Director of The Body Shop. Students must prepare a three$-$year forecast of the company's income statement and balance sheet. This case is intended to provide the first introduction to sales percentage forecasting and guide students through preparing a simplified forecast, first using pencil and paper and then using a spreadsheet program on a personal computer. The case highlights the ability to speak candidly about one's financial forecasts and insights useful to the economy.

Below are related questions.

$1.$ Why would a company like The Body Shop want to make a forecasted financial statement?

$2.$ Let$$s skip the practice questions and jump directly into the three$-$year forecast: How do you prepare for the forecast? What data did you get?

$3.$ How much debt financing will The Body Shop require during this forecast period? What are the "key drivers" of this demand, and how much does the assumption vary about how debt demand changes over time?

$4.$ What questions does this analysis raise for Roddick?