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Fortunately for Wal-Mart, the method worked. Wal-Mart grossed $100 billion, breaking its fourth-quarter sales record. Wal-Mart also beat a large competitor, Target, for the first time in almost a decade. CEO, Lee Scott assumed the worst because of the fourth-quarter retail forecast, and did what many retailers don’t want to do, cut prices so dramatically, it almost becomes a scare tactic to them. Pro Forma is a great tool because it forecasts what may be ahead.
“A cash forecast (budget) is a presentation of cash results based upon assumptions about conditions and actions expected to exist or occur during the forecast period (www...
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