The balance sheet I created was to display the financials for two years of the company. To create the sheet, I included numbers that were reasonably estimated, based on the information I discovered during my research. The accounts receivable assets were based on a predicted amount of customers and what they would owe the company. Under fixed assets, I included the snow cat and van, furniture and household items to be had, and property improvements that would be made. For liabilities, I noted payments to the employees, mortgage payments, and insurance payments, all of which are annual numbers.
For my five year projection plan, the numbers calculated were net income, total assets, and total liabilities. All of these numbers were predicted for a five year period after to creation of the business. To calculate net income, I subtracted the operating costs from the amount of annual income. For total assets, cash, accounts receivable, and fixed assets from my balance sheet were totaled. As for total liabilities, I included the annual payments of insurance, employees, and mortgage, as well as the long term debt that would be owed to the bank. |