How to Create a Balance Sheet
Creating Your Forecasted Balance Sheet
After completing your Financial Budgets (step 1). your First Year Forecasted Cash Flow Statement (step 2), and your First Year Forecasted Income Statement (step 3), the next step is to develop your First Year Forecasted Balance Sheet (remember to create your forecasted financial statements one year at a time).
Recall from previous discussions, the Balance Sheet is a statement used to determine the financial strength and weakness of a business. It consists of four main components, namely; The Heading, Assets, Liabilities. and Equity. The Heading depicts the name of the company, the name of the statement and the date at which the
account balances apply. Assets are items that have economic value to a company. Liabilities are items that have an economic burden on the company - usually items a business owes to other businesses. Equity consists of all the investments made into a company over the years - usually in the form of capital for sole proprietors & partnerships OR shareholder's investments & retained earnings for incorporated companies .
Below summaries the Budgets and Forecasted Financial Statements that need to be completed before you can develop your Forecasted Balance Sheet(s). Following this summary is Murray's 200X and 200Y Forecasted Balance Sheet (IE Scholarship Information Services).
Budget or Statement Name
Required to Determine Your Forecasted