Balance Sheet (Projected) at a glance
What it is: The Balance Sheet (Projected) is not a perfect forecast, but rather a thoughtful plan detailing what resources will be needed by the company, where they will be needed, and how they will be financed.
A filled-in Balance Sheet (Projected) example: a bakery projects its balance sheet
How to fill out Balance Sheet (Projected), box by box
Current Assets
Under Current Assets, enter Cash in bank, Accounts receivable, Inventory, Prepaid expenses, Other current assets and Total Current Assets.
Fixed Assets
Under Fixed Assets, enter Machinery & equipment, Furniture & fixtures, Leasehold improvements, Land & buildings, Other fixed assets and Total Fixed Assets (net of depreciation).
In the Fixed Assets section, the "LESS accumulated depreciation" figure is the total of all depreciation accrued over the years on all fixed assets still owned by the company. Be sure to enter it as a negative number so the spreadsheet will subtract it from Total Fixed Assets.
Other Assets
Under Other Assets, enter Intangibles, Deposits, Goodwill, Other and Total Other Assets.
Current Liabilities
Under Current Liabilities, enter Accounts payable, Interest payable, Taxes payable, Notes, short-term (due within 12 months), Current part, long-term debt, Other current liabilities and Total Current Liabilities.
Long-term Debt
Under Long-term Debt, enter Bank loans payable, Notes payable to stockholders, LESS: Short-term portion, Other long term debt and Total Long-term Debt.
The rest will have to be financed by borrowing, which can be: Short term loans (due within 12 months) such as a line of credit or by Long Term Debt (maturity greater than 12 months).
Owners' Equity
Under Owners' Equity, enter Invested capital, Retained earnings - beginning, Retained earnings - current and Total Owners' Equity.
In Owners' Equity, "Retained Earnings-Beginning" is retained earnings as of the last historical balance sheet or the end of the last fiscal year. "Retained Earnings-Current" is net profit for the period of the projections, less any owner's draw (for partnerships and proprietorships) or dividends paid (for corporations).
More rules for Balance Sheet (Projected)
Using your last historical balance sheet as a starting point, project what your balance sheet will look like at the end of the 12 month period covered in your Profit & Loss and Cash Flow forecasts.
If you are planning significant sales growth in the coming year, go through the balance sheet item by item. Inventory and Accounts Receivable will have to grow. New equipment may be needed for increased production. You may draw down on cash to finance some of this.
Since a balance must balance, you need to consider the effects on liabilities and equity. Some of the growth may be financed by profits retained in the business as Retained Earnings. Your Profit & Loss Projection will tell you how much might be available from that source. Funds may be contributed by the owners through contributions of more Invested Capital or loans to the company (Notes Payable to Stockholders). Suppliers may provide some of the financing via increased Accounts Payable.
Sources
[1] Balance Sheet (Projected) (the served file; no issuer file found) (the Official source link on this page).