This is a Working Example of our Forecasts
Registered users can produce their own business forecasts in minutes; exactly as is shown here.

Report name: Sample Forecast

How the Forecast Assets and Liabilities Analysis is Calculated

Cash and cash convertible assets are the source of liquidity. Depreciated fixed assets represent residual useful working life, not sale value.

forecast for year beginning the 1st.May 2017May 2018May 2019
Fixed assets
Main Pool Assets28,87334,87142,958
Company Cars27,75119,21034,832
Total Fixed Assets56,62454,08177,791
    
Current Assets
Stock / Inventory125,000150,000170,000
Sales Ledger86,09293,178146,549
Dr / Cr Card Balance000
Prepaid Letters of Credit000
Vat Refundable000
Cash at Bank014,300183,993
Factoring CR. Balance000

Asset Finance Interest in Suspense

6,5834,2556,208
Loan Interest in Suspense000
Total Current Assets217,675261,733506,750
    
Current Liabilities
Trade Creditors60,82160,19576,752
Sundry Creditors13,42817,38121,374

Vat Payable

5,7317,89910,606
Hire Purchase21,35017,86521,333
Loans000
Bank Overdraft35,43900
Factoring Dr. Balance000
Corporation tax Due13,61318,49547,077

Asset Finance Interest in Suspense

4,2703,5734,267
Loan Interest in Suspense000

Dividends Payable

000
Total Current Liabilities154,652125,407181,409
    
Long Term Liabilities

Asset Financing

11,5653,4139,707
Loan000

Asset Finance Interest in Suspense

2,3136831,941
Loan Interest in Suspense000
Total Long Term Liabilities13,8784,09511,648
    

Net Current Assets (Working Capital)

63,022136,326325,341
    
Net Assets105,768186,311391,483

Fixed Asset Value

Cost less depreciation defines fixed asset net book value. That describes its useful working life in a going concern, not fair value in the event of a sale.

Fixed assets represent a long term investment, meaning that they will also represent a charge to budgeted cash flow as well as to net operating cash flow, which supports the ability of a business to service future borrowings.

Fixed Assets - Written Down Tax Value

Depreciation does not involve cash transfers so is only recognised as a provision. As such HMRC does not allow it for the purpose of tax relief.. 

Instead, capital allowances are set off against the taxable profit, which, for main pool assets will allow 100% tax relief for the average SME in their first year of ownership.

When producing profit, liquidity and cashflow forecasts using Figurewizard, capital allowances and .taxable profits are calculated and applied by our system without intervention called for from the user.

How Figurewizard Budgets Fixed Assets

Fixed asset purchases, their VAT, depreciation and financing are all budgeted.

For example assets acquired at a cost of 6,000 in a given year are allocated by the system at £500 a month.meaning that depreciation is charged on 500 in month 1, 1,000 in month 2, 1,500 in month 3 and so on.

Financing and associated interest charges are allocated on the same basis. The sale of fixed assets are treated in the same way on a first in first out basis.

Assets and VAT

Figurewizard also calculates and applies VAT, including calculating and applying quarterly remittances or refunds to cash flow forecasts.

That does not apply to commercial vehicles, which are regarded by HMRC as main pool assets and therefore subject to 100% annual investment allowance in the year they are acquired.

Current Assets

Forecast current assets lists only cash and trading assets that are expected to be turned into cash in the normal course of trade within a year.

The principal trading assets are accounts receivable and stock. Auditors will check the progress of such assets against their year-end values and may reduce them if they are perceived to take more than a year to convert into cash.

Examples of other qualifying current assets are deposits and pre-payments, including letters of credit, issued for the purchase of goods whose documentation has not yet been accepted.

Current Liabilities

Debt that is repayable within twelve months going forward is classified as current liabilities.

Current liabilities are not restricted to those incurred in the acquisition of current assets. All debt including that for borrowings, such as the bank overdraft, financing the acquisition of both current and fixed assets or dividends declared and outstanding for payment are included.

FAQs
Corporation Tax and Marginal Relief From 2023 Deferred Income Explained What is a Monthly Cash Flow Forecast What is Pretax Profit How does a balance sheet balance? Lockdown Recovery: Forecasting Profits, Cash and Finance. How to Apply for Business Interruption Scheme with Figurewizard How to calculate liquidity and short-term liquidity How to calculate markup and margin The Truth about Monarch Airlines Labour's Spending over 10 years from 2000 How to make profits and not run out of cash Credit Checking - How to Read Micro or Short Form Accounts Amortisation of Arrangement Fees for Long Term Loans BHS Profits Performance 2010 - 2014 BHS profits, liquidity and cash flows 2009 - 2014 How to Calculate a Free Cash Flow Forecast Campari: How to apply for a bank business loan What are Current Liabilities What are Current Assets Late Payers and Cash Flow What is Operating Cash Flow? What is Working Capital How to Read a Balance Sheet Business Planning Cash Flow Calculator Short Term Liquidity Business Liquidity Corporation Tax is not Calculated on Net Profit Small Business Corporation Tax Cash Flow Calculator Using Figurewizard - VAT Using Figurewizard - Sales by Month Using Figurewizard - HP or Instalment Plan Budgets Using Figurewizard - How the budgeted cash flow forecast is calculated Using Figurewizard - Fixed Asset Budgets Using Figurewizard - Calculate Purchase of Goods Using Figurewizard - Forecasting Payments to Suppliers Using Figurewizard - How to Forecast Cash Collection Solvency and the Balance Sheet Property in the Balance Sheet Why Equity is a Liability Asset Management and Liquidity Selling Fixed Assets Contracts: Invitation to Treat What is Deferred Income Loss on the Sale of Fixed Assets Calculating Gross Profit Margin Profit and Loss Statement What is Operating Profit What is Net Operating Revenue What is Equity Profit on the Sale of Fixed Assets How Taxable Profit is Calculated What are Operating Overheads Overheads - Provisions How Depreciation is Calculated What is Business Operating Activity What are Fixed Assets Liquidity and Cash Flow Balance Sheet Liabilities and Leases Stock or Inventory Control What is Distressed Stock or Inventory What is Interest Suspense Account Product Safety Laws What is a Bill of Exchange What is Payment at Sight What is a Pro Forma Invoice What is a Bill of Lading What is a packing note What is Demurrage Cash Flow Forecasts and Planning Factoring: Invoice Discounting and Cash Flow How Does VAT Work Figurewizard as a Sales Aid for Factoring and Invoice Discounting