| forecast for year beginning the 1st. | May 2017 | May 2018 | May 2019 |
| Fixed Assets | 56,624 | 54,081 | 77,791 |
| Current Assets | 217,675 | 261,733 | 506,750 |
| Total Assets | 274,298 | 315,813 | 584,540 |
| Current Liabilities | 154,652 | 125,407 | 181,409 |
| Long Term Liabilities | 13,878 | 4,095 | 11,648 |
| Total Liabilities | 168,530 | 129,502 | 193,057 |
Net Current Assets (Working Capital) | 63,022 | 136,326 | 325,341 |
| Net Assets | 105,768 | 186,311 | 391,483 |
| Capital | 5,000 | 5,000 | 5,000 |
Retained Profits Bfwd | 20,000 | 100,768 | 181,311 |
add: Profit / Loss after Tax | 80,768 | 80,543 | 205,172 |
less: Dividend | 0 | 0 | 0 |
Retained Profits C/Fwd | 100,768 | 181,311 | 386,483 |
Capital and Reserves (Equity) | 105,768 | 186,311 | 391,483 |
A balance sheet forecasts a company’s financial condition. Net assets in deficit forecasts insolvency, net current assets in deficit, a liquidity crisis
Under no circumstances should your business plan's balance sheet forecast include a deficit for either of these.
Equity, also known as shareholders’ funds or reserves is owed by the company to its shareholders. Hence it is a liability..
Equity includes paid up share capital, tax paid profits that have been re-invested and if applicable, share premium account. That all balances against the company's net assets.
Figurewizard automatically produces this balance sheet forecast simply using your forecast sales, margins, overheads, investment and a few simple cash ratios.
UK corporation tax .and VAT are automatically automatically calculated and applied to the forecasts and the calculator / planners by the system.
Net current assets represent working capital which measures balance sheet liquidity.
Current assets refer explicitly to core trading assets such as cash, accounts receivable and stock that is reliably expected to be turned into cash within a year minus all debt scheduled to be paid, also within a year.
A positive liquidity forecast tells you and others, for example the bank how well you expect your business plan to generate cashflow from its core trading operations.
Figurewizard's What-If Calculator and Planner gives you the opportunity to update / change forecasts in real time.
Here it is used to improve working capital and cash by reducing forecast wages and fixed overheads - Each by increments of 5%
| Year 1 less | Fixed O/Heads & Wages | Pre-Tax Profit | Equity | Working Capital | .Borrowings plus / minus | Bank Year End |
| 0% | 430,000 | 94,381 | 105,052 | 59,993 | 53,854 | -35,439 |
| 5% | 408,500 | 116,779 | 123,911 | 81,165 | 33,488 | -13,261 |
| 10% | 387,000 | 138,712 | 141,677 | 98,931 | 9,962 | 8,452 |
Cost less depreciation describes the net book value of fixed assets in the balance sheet.
Net book value is the residual value of fixed assets' forecast working life in the business, not their estimated fair market values.
That is an important distinction. Depreciated net book values for fixed assets are almost always significantly lower than those that could be obtained if put up for sale. In the event of a forced sale their prices would be lower still.
Further, fixed assets play no part in defining liquidity other than depleting it upon their acquisition; regardless of asset financing.
Working capital and cash flow forecasts are affected by investment in new fixed assets. The costs plus any new debt associated with financing always reduces balance sheet liquidity.
For example, in this sample forecast, £30,000 of new main pool assets (e.g. plant and machinery, fixtures, equipment, trucks and vans) and £25,000 for company cars have been entered, a total of £55,000. Seventy percent of that is financed over 24 months.
The table below shows how that £55,000 affects working capital and cash flow, followed by what happens to these if first the £25,000 for new cars is removed followed by the £30,000 of new main pool assets.
| Fixed Asset Acquisitions | Fixed Overheads | Interest Charges | Equity | Working Capital | Increase / Decrease Borrowings | Bank Year End |
| 55,000 | 430,000 | 5,062 | 105,052 | 59,993 | 53,854 | -35,439 |
| 30,000 | 408,500 | 3,104 | 127,097 | 100,956 | 5,616 | -691 |
| 0 | 387,000 | 1,488 | 143,371 | 135,789 | -48,780 | 69,719 |
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