Balance Sheets

How to forecast the various types of accounts is explained below.

Cash Plug Account

The Cash account is a plug used to balance the statements. If liabilities and equity grow faster than assets, the Cash account will grow to make up the difference. Conversely, if assets grow faster than liabilities and equity, the Cash account will shrink to absorb the difference. If liabilities and equity exceeds assets, the Cash account will show a negative amount.

Common Size Accounts

The following accounts are projected using common size proportions (percentage of total assets):

Accounts Receivable

Inventory

Other Current Assets

Other Non-Current

Accounts Payable

Short Term Notes Payable

Current Portion of LT Debt

Other Current Liabilities

Other Non-Current Liabilities

By default these accounts are projected at the same common size proportions as Year 0 (the last fiscal period in the historical data). You can change the common size proportions by overwriting the percentages in the Maintain Common Size column. For help restoring the calculated percentages, see Restoring Cells.

Fixed Assets

The growth of the Fixed Assets account is calculated from the Yearly Investment in Capital Expenditures amount on the Inputs worksheet and the Depreciation account on the Income Statements worksheet.

Net Intangibles

The growth of the Net Intangibles account is calculated from the Yearly Investment in Intangibles amount on the Inputs worksheet and the Amortization account on the Income Statements worksheet.

Total Equity

The Total Equity account balance equals the previous period's amount plus Net Income from the Income Statements worksheet for the current period.

All Other Accounts

All of the remaining accounts are calculated from the accounts explained above.