Projected Balance Sheet and Cash Flow Statement
The projected balance sheet shows the financial position of the business as of a specific date, say, end of the fiscal or calendar year. The projected cash flow statement, on the other hand, reports the estimated cash receipts and cash payments for a business for a specific time period.
To enable one to come up with these statements, assumptions on the following components must be drawn up:
- Current assets
- Cash minimum requirement – may be expressed as number of days total cash operating costs and expenses or a given amount.
- Marketable securities or short-term investments - expressed either as excess cash generated (after covering minimum cash requirement) earning ___% interest or a given amount.
- Accounts receivable - expressed either as number of days sales in accounts receivable or a given amount.
- Other current assets
- Permanent investments
- Plant, property and equipment
Note: Indicate whether taken as year-end or beginning year acquisitions; specify annual/periodic acquisitions, retirements, replacements or sale, if any.
- land improvements
- building - specify any construction in progress and corresponding timing in project
- building improvements
- machinery and equipment
- other equipment
- office furniture and fixtures
- other fixed assets
- Other assets
- preoperating expenses (and development costs) - specify breakdown and desired amortization schedule
- prepaid assets
- other assets
- Current liabilities
- accounts payable – may be expressed as number of days total cash operating cost and expenses or a given amount.
- other current liabilities
- Long-term debt - give details on each long-term debt acquired and corresponding terms to be applied
- Other liabilities