Abstract: In this case, the student is cast into the role of adviser to Anita Roddick, the managing director of The Body Shop. The student must prepare a three-year forecast of the firm's income statement and balance sheet. The case is intended to provide a first-time introduction to percent-of-sales forecasting and walks the student through the preparation of a simplified forecast, first using pencil and paper, then a spreadsheet program on the personal computer. The case emphasizes the importance of being able to talk plainly about one's financial forecast and the insights that are of use to the general manager. --

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