3 Statement Financial Modeling: Step 7

When filling up balance sheet forecasted years, we will leave cash blank for now. After we complete the cash flow statement and calculate closing cash balance, we will link this closing cash balance back to the balance sheet, and then our balance sheet will be balanced right here. But for now, we will leave it blank and we'll come back to it in the very final step when building the three statement model.

So let's go ahead and start with accounts receivables. We do have our days receivables in our assumptions in the row. I will multiply it by my revenue in my income statement in row 4 and divide by 365 days a year. I'm basically converting the formula for days receivables to calculate accounts receivables here.

Inventory follows the same logic. I'm gonna find days inventory in my assumptions below in row 71, multiplied by my cost of goods sold in my income statement in row 5, and divided by 365 days a year. For PP&E ending balance, I'm gonna go ahead into my supporting schedules all the way down in row 90 and grab PP&E ending balance from here. Trusting the steps here, and then my total assets already calculated in the previous year. I will just fill this formula to the right so it will be flowing correctly.