Forecasting the Balance Sheet

Overview

Prior Balance Sheet

Income Statements

Current Assets

Taken to be a fixed percentage of sales

Inventory

Taken to be a fixed percentage of sales

Goodwill and Intangibles

Goodwill is taken to be constant.

Property, Plant and Equipment

The net value of property plant and equipment (with depreciation subtracted out) is taken as a fixed percentage of sales. Once calculated, the property plant and equipment account can be calculated by adding in depreciation.

Current Liabilities

Taken to be a fixed percentage of sales

Long Term Debt

Full Model

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