How To Prepare Projected Income Statement And Balance Sheet

Prepare projected p l and balance sheet on the basis of following assumptions prepare working note for loan interest fd interest and depriciation assumptions year 1 sales double existing loan repaid in 5 yrs in 5 equal principal instalments interest installment paid in the beginning of the next year assume 15 inflation.

How to prepare projected income statement and balance sheet. Finally i want to show you how the balance sheet changes when i buy a small office for my business. How does a new loan impact the balance sheet. Green as at 31 march 2015. So as of right now i have 5 000 in income and only 1 000 in expenses so i have a 4 000 net income that flows through to retained earnings on the balance sheet.

When preparing projected balance sheet businesses make certain assumptions like the increase in future sales income and reducing the expenses. A projected income statement will show how much cash you expect to have coming in and left over at the end of an upcoming period. Preparation of balance sheet horizontal and vertical style. This article is about how to create a projected balance sheet.

Green as at 31 march 2015 in both horizontal and vertical style. These are represented by the owner s equity in the form of share capital profit and loss and other reserves. Income statements show how much profit a business generated during a specific reporting period and the amount of expenses incurred while earning revenue. Prepare balance sheet for f.

In the absence of information about the date of repayment of a liability then it may be assumed. The following trial balance is prepared after preparation of income statement for f. A balance sheet lists a company s assets and liabilities. A balance sheet and in this case a projected balance sheet is a snap shot of a company s financial health.