|
Pro
Forma Balance
Sheet Template |
|
| The balance sheet is an accounting statement which illustrates the value of the assets, liabilities, and equity (net worth) of a franchise at a specific time. The balance sheet is a "snapshot" of the financial condition; it shows how a business utilizes its resources and assets in comparison with the debt and ownership (or equity) of the business. This statement is divided into two counterbalancing sections: (1) assets (what the business owns) and (2) liabilities (what the business owes) and owners
equity (owner investment capital). This accounting equation states: Assets = Liabilities + Owners
Equity. A pro forma balance sheet is much like a historical balance sheet, but it represents a future projection. The pro forma balance sheet is a budget or plan of the assets and liabilities of the business.
It is used to plan liquidity. In may also be used to project overall financial soundness of the company.
The data contained within the pro-forma balance sheet comes from the
cash flow statement, any changes in taxes or retained earnings, and
the actual balance sheet variables contained in the last quarter's
balance sheet. |
1. Complete a balance sheet for start-up and project for years 1-3
2. Explain in narrative or footnotes to the document the rationales used
to reach the amounts on the balance sheet -
BE SPECIFIC!
|