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

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

Vat Payable

Hire Purchase21,35017,86521,333
Bank Overdraft35,43900
Factoring Dr. Balance000
Corporation tax Due13,61318,49547,077

Asset Finance Interest in Suspense

Loan Interest in Suspense000

Dividends Payable

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

Asset Financing


Asset Finance Interest in Suspense

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

Net Current Assets (Working Capital)

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.

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