TRUE OR FALSE

138 139 140 141 142 143 144 145 100 Forecasts may be qualitative or quantitative. Forecasting is quite different than Financial Statement Analysis Forecasts are only used to establish budgets. Normalized Earnings focus on predicting one-time and non-recurring items. The concept of earnings power is the long-term (3 to 5 year) expectation of the company's earnings after any near-term anomalous behavior has passed. Forecasts are generally focused on the next 3 months