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Projected Balance Sheet
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An example of a simple projected Balance Sheet is shown below:
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Assets |
Start |
Jan |
Feb |
March |
Apr |
May |
Jun |
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RANDS |
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Current Assets |
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|
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Cash Balance |
55 |
15 |
21 |
7 |
15 |
93 |
53 |
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Accounts Receivable |
395 |
371 |
474 |
576 |
644 |
803 |
791 |
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Inventory |
251 |
332 |
444 |
545 |
701 |
878 |
647 |
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Other Current Assets |
25 |
25 |
25 |
25 |
25 |
25 |
25 |
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Subtotal |
726 |
743 |
964 |
1153 |
1385 |
1799 |
1516 |
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Capital Assets |
350 |
375 |
375 |
390 |
390 |
440 |
440 |
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Accumulated Depreciation |
50 |
51 |
52 |
53 |
54 |
55 |
56 |
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|
Subtotal |
300 |
324 |
323 |
337 |
336 |
385 |
384 |
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TOTAL ASSETS |
1026 |
1067 |
1287 |
1490 |
1721 |
2184 |
1900 |
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Liabilities |
Start |
Jan |
Feb |
March |
Apr |
May |
Jun |
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Current liabilities |
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Accounts payable |
224 |
268 |
371 |
431 |
564 |
704 |
517 |
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Current Notes |
90 |
90 |
190 |
220 |
320 |
320 |
220 |
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Other Current Liabilities |
15 |
15 |
15 |
15 |
15 |
15 |
15 |
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|
Subtotal |
329 |
373 |
576 |
666 |
899 |
1039 |
752 |
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|
Non-current liabilities |
285 |
282 |
279 |
376 |
373 |
370 |
367 |
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Total Liabilities |
614 |
615 |
855 |
1012 |
1272 |
1409 |
1119 |
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Capital |
Start |
Jan |
Feb |
March |
Apr |
May |
Jun |
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Paid-in Capital |
500 |
500 |
525 |
525 |
525 |
825 |
825 |
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Retained Earnings |
(163) |
(88) |
(88) |
(88) |
(88) |
(88) |
(88) |
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Earnings |
75 |
0 |
5 |
11 |
12 |
38 |
44 |
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Total Capital |
412 |
412 |
432 |
448 |
449 |
775 |
781 |
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|
CAPITAL AND LIABILITIES |
1026 |
1067 |
1287 |
1490 |
1721 |
2184 |
1900 |
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Source: Adapted from Balance Sheet Example. www.bplans.com/common/gifs/bplans/ IL15-7. Accessed on 19/08/09
Projecting a Balance Sheet requires a little bit more insight than the projection of the Income Statement. The following are some important points to remember for a Balance Sheet Projection:
- Fixed assets in the Balance Sheet projections form part of projecting your capital spending.
- Inventory projections will stem from the sales forecasts, as well as some analysis of production or delivery schedules in relation to your forecasted sales. Inventory projections should also take into account buffer stocks in case there are unexpected changes in demand.
- The retained earnings entries will change by the amount of net profit in any one period.
- Accounts payable can be projected as follows:-
- Accounts payable can be projected as ratios. For example, if you receive an average of the same deliveries each month and your suppliers give you credit of 30 days and you make one payment per month, projected payables will average one-half of one month’s spending on supplies.
- Accounts payable is not a change figure, but an actual figure.
- Accounts receivable can be projected in a similar manner to accounts payable. Accounts receivable is also not a change figure, but an actual figure.
- Projecting cash, loans and share capital will depend on your cash flow and financing policies. The following section will cover information on financing policies.
Remember that the two halves of the balance sheet in your projections must balance. If they do not balance you need to revisit your figures.
Click here to learn more about the Projected Balance Sheet.
Klik hier om meer te leer oor die Geprojekteerde Balansstaat.