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Projected Balance Sheet and Cash Flow Statement

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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:

  1. Current assets
    1. Cash minimum requirement – may be expressed as number of days total cash operating costs and expenses or a given amount.
    2. Marketable securities or short-term investments - expressed either as excess cash generated (after covering minimum cash requirement) earning ___% interest or a given amount.
    3. Accounts receivable - expressed either as number of days sales in accounts receivable or a given amount.
    4. Other current assets
  2. Permanent investments
  3. Plant, property and equipment
    1. land
    2. land improvements
    3. building - specify any construction in progress and corresponding timing in project
    4. building improvements
    5. machinery and equipment
    6. other equipment
    7. office furniture and fixtures
    8. other fixed assets
  4. Note: Indicate whether taken as year-end or beginning year acquisitions; specify annual/periodic acquisitions, retirements, replacements or sale, if any.
  5. Other assets
    1. preoperating expenses (and development costs) - specify breakdown and desired amortization schedule
    2. prepaid assets
    3. other assets
  6. Current liabilities
    1. accounts payable – may be expressed as number of days total cash operating cost and expenses or a given amount.
    2. other current liabilities
  7. Long-term debt - give details on each long-term debt acquired and corresponding terms to be applied
  8. Other liabilities
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