{"id":21355,"date":"2020-01-24T19:47:29","date_gmt":"2020-01-24T19:47:29","guid":{"rendered":"https:\/\/www.process.st\/templates\/financial-planning-process-3\/"},"modified":"2024-02-29T01:12:53","modified_gmt":"2024-02-29T01:12:53","slug":"financial-planning-process-3","status":"publish","type":"post","link":"https:\/\/www.process.st\/templates\/financial-planning-process-3\/","title":{"rendered":"Financial Planning Process"},"content":{"rendered":"<section id=\"introduction\">\n<h2>Introduction:<\/h2>\n<div class=\"image-content\">\n<figure>\n   <a href=\"https:\/\/www.process.st\/templates\/wp-content\/uploads\/2024\/02\/pDiSuOhZcQkrrdm4oTlFCg.png\" alt=\"Introduction:\" target=\"_blank\" rel=\"noopener\"> <img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/www.process.st\/templates\/wp-content\/uploads\/2024\/02\/pDiSuOhZcQkrrdm4oTlFCg.png\"> <\/a><br \/>\n  <\/figure>\n<\/p><\/div>\n<div class=\"text-content\">\n<p class=\"style-blockquote\" style=\"text-align: center;\"><span>''By failing to prepare, you are preparing to fail'' - Benjamin Franklin<br \/><\/span><\/p>\n<\/p><\/div>\n<div class=\"text-content\">\n<p><strong><a href=\"https:\/\/www.process.st\/?source=adwords-search-1&amp;gclid=EAIaIQobChMIn8eK29CO4gIVQcAYCh0oXARAEAAYAiAAEgKPKfD_BwE\" rel=\"nofollow\"><span>Process Street<\/span><\/a><span>\u2019s Financial Planning Process is a guide to aid you through the process of producing a financial plan for your small business.<\/span><\/strong><\/p>\n<p><span>This Financial Planning Process should be used in conjugation with&nbsp;<\/span><a href=\"https:\/\/www.process.st\/?source=adwords-search-1&amp;gclid=EAIaIQobChMIn8eK29CO4gIVQcAYCh0oXARAEAAYAiAAEgKPKfD_BwE\" rel=\"nofollow\"><span>Process Street<\/span><\/a><span>\u2019s <a href=\"https:\/\/www.process.st\/templates\/financial-plan-template\/\" rel=\"nofollow noopener\" target=\"_blank\">Financial Plan Template<\/a><\/span><span>.<\/span><span>&nbsp;The Financial Plan Template is for the actual production of your financial plan, this Financial Planning Process is to be used to gather the required information and data to produce the financial plan.<\/span><\/p>\n<p>You should, therefore, complete this Financial Planning Process before you attempt the Financial Plan Template.&nbsp;<\/p>\n<p><a href=\"https:\/\/www.process.st\/?source=adwords-search-1&amp;gclid=EAIaIQobChMIn8eK29CO4gIVQcAYCh0oXARAEAAYAiAAEgKPKfD_BwE\" rel=\"nofollow\"><span>Process Street<\/span><\/a><span>\u2019s Financial Planning Process has condensed the process of creating a financial plan into the following tasks:<\/span><\/p>\n<ul>\n<li><span>State assumptions using your income statement&nbsp;<\/span><\/li>\n<li>State assumptions using your balance sheet&nbsp;<\/li>\n<li><span>State assumption using your cash flow<\/span><\/li>\n<li><span>Project forwards for the income statement <\/span><\/li>\n<li><span>Project forwards for the balance sheet&nbsp;<\/span><\/li>\n<li><span>Project forwards for the cash flow statement&nbsp;<\/span><\/li>\n<li><span>Sale forecasts&nbsp;<\/span><\/li>\n<li><span>Financial plan production<\/span><\/li>\n<\/ul>\n<p><a href=\"https:\/\/onlinelibrary.wiley.com\/doi\/pdf\/10.1002\/9781119203124.app2\" rel=\"nofollow noopener\" target=\"_blank\"><span>1963&nbsp;<\/span><\/a><span>marks the time when the first ever financial plan was produced. John Keeble and Richard Felder, founders of the Financial Services Corporation, were the parents of this first financial plan procedure.<\/span><\/p>\n<p><span>Keeble and Felder certainly had the foresight to determine the benefits producing a financial plan could have.<\/span><\/p>\n<p><span>As the&nbsp;<\/span><strong><a href=\"https:\/\/www.preferredcfo.com\/cash-flow-reason-small-businesses-fail\/\" rel=\"nofollow noopener\" target=\"_blank\"><span>majority of small businesses fail in the first five years<\/span><\/a><\/strong><span>, it is important you manage your small business to prevent this failure statistically stacked against you.<\/span><\/p>\n<p><a href=\"https:\/\/www.score.org\/\" rel=\"nofollow noopener\" target=\"_blank\"><span>78%<\/span><\/a><span>&nbsp;of small businesses fail due to the lack of a well-developed business plan,&nbsp;<\/span><a href=\"https:\/\/www.score.org\/\" rel=\"nofollow noopener\" target=\"_blank\"><span>77%<\/span><\/a><span>&nbsp;fail due to incorrect pricing, and&nbsp;<\/span><a href=\"https:\/\/www.score.org\/\" rel=\"nofollow noopener\" target=\"_blank\"><span>79%<\/span><\/a><span>&nbsp;fail due to starting out with too little money.<\/span><\/p>\n<p><span>The above are<\/span><strong><span>&nbsp;failings which can be avoided with an effective financial plan.&nbsp;<\/span><\/strong><\/p>\n<p><strong><span>The aim of&nbsp;<\/span><a href=\"https:\/\/www.process.st\/?source=adwords-search-1&amp;gclid=EAIaIQobChMIn8eK29CO4gIVQcAYCh0oXARAEAAYAiAAEgKPKfD_BwE\" rel=\"nofollow\"><span>Process Street<\/span><\/a><span>\u2019s Financial Planning Template is to help you produce a financial plan for your small business, to prevent business failure, and to enable you to actively plan ahead.<\/span><\/strong><\/p>\n<p><span>In this template, you will be presented with specialized questions given as a form field. Different form fields are used, such as subtasks, dropdown menus, short answers, long answers, and weblinks.<\/span><\/p>\n<p><span>You can populate each form field with your own specific data.&nbsp;<\/span><\/p>\n<p><span>Our&nbsp;<\/span><a href=\"https:\/\/www.process.st\/help\/docs\/stop-tasks\/\" rel=\"nofollow noopener\" target=\"_blank\"><span>stop task<\/span><\/a><span>&nbsp;feature has been used to enforce task order when needed.&nbsp;<\/span><\/p>\n<p><span>In addition, our&nbsp;<\/span><a href=\"https:\/\/www.process.st\/help\/docs\/conditional-logic\/\" rel=\"nofollow noopener\" target=\"_blank\"><span>conditional logic<\/span><\/a><span>&nbsp;task has been used as required to guide you through the correct process path specific for your entered data.<\/span><\/p>\n<\/p><\/div>\n<\/section>\n<section id=\"record-checklist-details\">\n<h2>Record checklist details<\/h2>\n<div class=\"text-content\">\n<p><span>In this Financial Planning Process, you will be<strong> presented with the following form fields<\/strong>, which you are required to populate with your own specific data. More information is provided for each form field via linkage to our help pages:<\/span><\/p>\n<ul>\n<li><a href=\"https:\/\/www.process.st\/help\/docs\/how-subtask-work\/\" rel=\"nofollow noopener\" target=\"_blank\"><span>Subtasks&nbsp;<\/span><\/a><\/li>\n<li><a href=\"https:\/\/www.process.st\/help\/docs\/form-fields\/\" rel=\"nofollow noopener\" target=\"_blank\"><span>Dropdown<\/span><\/a><\/li>\n<li><a href=\"https:\/\/www.process.st\/help\/docs\/form-fields\/\" rel=\"nofollow noopener\" target=\"_blank\"><span>Short text<\/span><\/a><\/li>\n<li><a href=\"https:\/\/www.process.st\/help\/docs\/form-fields\/\" rel=\"nofollow noopener\" target=\"_blank\"><span>Long Text<\/span>&nbsp;<\/a><\/li>\n<li><a href=\"https:\/\/www.process.st\/help\/docs\/form-fields\/\" rel=\"nofollow noopener\" target=\"_blank\"><span>Date<\/span><\/a><\/li>\n<li><a href=\"https:\/\/www.process.st\/help\/docs\/form-fields\/\" rel=\"nofollow noopener\" target=\"_blank\"><span>Entering email address&nbsp;<\/span><\/a><\/li>\n<li><a href=\"https:\/\/www.process.st\/help\/docs\/file-widget\/\" rel=\"nofollow noopener\" target=\"_blank\">File upload<\/a><\/li>\n<li><a href=\"https:\/\/www.process.st\/help\/docs\/video-widget\/\" rel=\"nofollow noopener\" target=\"_blank\">Video<\/a><\/li>\n<\/ul>\n<p><span>To begin the Financial Plan Template, enter the required details into the form fields below.<\/span><\/p>\n<p><span>This is a<strong> stop task<\/strong>, which means you are unable to move onto the next tasks in this Financial Planning Process until all form fields in this section are complete.<\/span><\/p>\n<\/p><\/div>\n<div class=\"text-field-content form-field-content\">\n<div class=\"form-group\">\n   <label> Your full name <\/label><br \/>\n   <input type=\"text\" placeholder=\"Something will be typed here...\" disabled class=\"form-control\">\n  <\/div>\n<\/p><\/div>\n<div class=\"text-field-content form-field-content\">\n<div class=\"form-group\">\n   <label> Your business name <\/label><br \/>\n   <input type=\"text\" placeholder=\"Something will be typed here...\" disabled class=\"form-control\">\n  <\/div>\n<\/p><\/div>\n<div class=\"text-field-content form-field-content\">\n<div class=\"form-group\">\n   <label> Address line 1 (street address) <\/label><br \/>\n   <input type=\"text\" placeholder=\"Something will be typed here...\" disabled class=\"form-control\">\n  <\/div>\n<\/p><\/div>\n<div class=\"text-field-content form-field-content\">\n<div class=\"form-group\">\n   <label> Address line 2 (apartment, suite, unit) <\/label><br \/>\n   <input type=\"text\" placeholder=\"Something will be typed here...\" disabled class=\"form-control\">\n  <\/div>\n<\/p><\/div>\n<div class=\"text-field-content form-field-content\">\n<div class=\"form-group\">\n   <label> City <\/label><br \/>\n   <input type=\"text\" placeholder=\"Something will be typed here...\" disabled class=\"form-control\">\n  <\/div>\n<\/p><\/div>\n<div class=\"text-field-content form-field-content\">\n<div class=\"form-group\">\n   <label> ZIP code <\/label><br \/>\n   <input type=\"text\" placeholder=\"Something will be typed here...\" disabled class=\"form-control\">\n  <\/div>\n<\/p><\/div>\n<div class=\"select-field-content form-field-content\">\n<div class=\"form-group\">\n   <label> Country <\/label><br \/>\n   <select disabled class=\"form-control\"><option value=\"An option will be selected here\">An option will be selected here<\/option><\/select>\n  <\/div>\n<\/p><\/div>\n<div class=\"date-field-content form-field-content\">\n<div class=\"form-group\">\n   <label> Financial Planning Process start date <\/label> <\/p>\n<div class=\"date-container\">\n    <button type=\"button\" disabled class=\"btn btn-default\"> <i class=\"fa fa-calendar btn-icon\"><\/i> Date will be set here <\/button>\n   <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/section>\n<section id=\"state-assumptions-using-your-income-statement\">\n<h2>State assumptions using your income statement:<\/h2>\n<div class=\"image-content\">\n<figure>\n   <a href=\"https:\/\/www.process.st\/templates\/wp-content\/uploads\/2024\/02\/jMUSaXaeNaTE-h4W0ftClw.jpg\" alt=\"State assumptions using your income statement:\" target=\"_blank\" rel=\"noopener\"> <img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/www.process.st\/templates\/wp-content\/uploads\/2024\/02\/jMUSaXaeNaTE-h4W0ftClw.jpg\"> <\/a><br \/>\n  <\/figure>\n<\/p><\/div>\n<\/section>\n<section id=\"create-the-required-financial-statements\">\n<h2>Create the required financial statements<\/h2>\n<div class=\"text-content\">\n<p>The first step of the financial planning process is to make sure you have <strong>created the required financial statements<\/strong>.&nbsp;<\/p>\n<ul>\n<li><span>See &nbsp;<\/span><a href=\"https:\/\/www.process.st\/\" rel=\"nofollow\"><span>Process Street<\/span><\/a><span>\u2019s&nbsp;<\/span><a href=\"https:\/\/www.process.st\/templates\/income-profit-and-loss-statement-process\/\" rel=\"nofollow\"><span>Income (Profit and Loss) Statement Process<\/span><\/a><\/li>\n<li><span>See &nbsp;<\/span><a href=\"https:\/\/www.process.st\/\" rel=\"nofollow\"><span>Process Street<\/span><\/a><span>\u2019s&nbsp;<\/span><a href=\"https:\/\/www.process.st\/templates\/cash-flow-report\" rel=\"nofollow\"><span>Cash Flow Report<\/span><\/a><\/li>\n<li><span>See &nbsp;<\/span><a href=\"https:\/\/www.process.st\/\" rel=\"nofollow\"><span>Process Street<\/span><\/a><span>\u2019s&nbsp;<\/span><a href=\"https:\/\/www.process.st\/templates\/accounts-receivable-process\/\" rel=\"nofollow\"><span>Accounts Receivable Process<\/span><\/a><\/li>\n<li><span>See &nbsp;<\/span><a href=\"https:\/\/www.process.st\/\" rel=\"nofollow\"><span>Process Street<\/span><\/a><span>\u2019s&nbsp;<\/span><a href=\"https:\/\/www.process.st\/templates\/accounts-payable-process\/\" rel=\"nofollow\"><span>Accounts Payable Process<\/span><\/a><\/li>\n<li><span>See &nbsp;<\/span><a href=\"https:\/\/www.process.st\/\" rel=\"nofollow\"><span>Process Street<\/span><\/a><span>\u2019s&nbsp;<\/span><a href=\"https:\/\/www.process.st\/templates\/balance-sheet-statement-preparation-checklist\" rel=\"nofollow\"><span>Balance Sheet Statement Preparation Checklist<\/span><\/a><\/li>\n<li><span>See &nbsp;<\/span><a href=\"https:\/\/www.process.st\/\" rel=\"nofollow\"><span>Process Street<\/span><\/a><span>\u2019s&nbsp;<\/span><a href=\"https:\/\/www.process.st\/templates\/financial-plan-template\/\" rel=\"nofollow\"><span>financial plan template<\/span><\/a><\/li>\n<\/ul>\n<p><span>Check off each task in the subtasks below on the<strong> completion of each financial statement<\/strong>.<\/span><\/p>\n<p><span>The final task under this heading 'State assumptions using your income statement' is a <strong>stop task<\/strong>, you cannot move forward in this template until your assumptions are clearly defined as such.<\/span><\/p>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Income (Profit and Loss) Statement process\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       2\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Cash Flow Report\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       3\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Balance Sheet Statement Preparation Checklist\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<div class=\"text-content\">\n<p>Your assumptions made for<strong> your future forecasts can be added to the financial statements<\/strong>. <strong>Highlight what are forecasts<\/strong> and what are your actual current numbers so it is <strong>easy to distinguish the two<\/strong> when viewing your financial statements.<\/p>\n<\/p><\/div>\n<div class=\"text-content\">\n<p class=\"style-info\">A <a href=\"https:\/\/corporatefinanceinstitute.com\/resources\/knowledge\/modeling\/what-is-financial-modeling\/\" rel=\"nofollow noopener\" target=\"_blank\">financial model<\/a> is defined as a tool used to forecast the financial future of a business into the future.<\/p>\n<\/p><\/div>\n<\/section>\n<section id=\"assume-your-growth-rate\">\n<h2>Assume your growth rate<\/h2>\n<div class=\"text-content\">\n<p>Once you have completed the required financial statements, you can look at the data in these statements to make <strong>make your assumptions<\/strong>.<\/p>\n<p>Assumptions are a key part of the financial planning process, to create your financial model, to <strong>project what will happen in the future<\/strong>.<\/p>\n<p>Check off each task from the subtasks below on their completion.&nbsp;<\/p>\n<p>The <strong>dropdown form field<\/strong> provided presents a <strong>conditional step<\/strong> in this process. You will be directed to the relevant page based on your response selected.<\/p>\n<\/p><\/div>\n<div class=\"text-content\">\n<h4 style=\"text-align: center;\">Calculate your actual revenue growth&nbsp;<\/h4>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Choose two time periods equal in length\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       2\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Find the current revenue from that one time period\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       3\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Find the revenue from the previous time period\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       4\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Find the different in revenue between the two periods\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       5\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Divide this difference by the revenue from the prior year and multiply by 100 to obtain a percentage value\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<div class=\"text-content\">\n<h5 style=\"text-align: center;\">Revenue Growth = [(Current Revenue - Previous Revenue) \/ Previous Revenue ] x 100<\/h5>\n<\/p><\/div>\n<div class=\"text-content\">\n<h4 style=\"text-align: center;\">Calculate your average percentage growth rate&nbsp;<\/h4>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Calculate the average growth rate\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       2\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      You obtain a value for the average growth rate for that specified time period and can us this to as a forecast growth rate for future time periods being considered.\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<div class=\"text-content\">\n<p class=\"style-danger\">There are other ways to calculate your average growth rate, the simplest has been considered above. The average annual growth rate does not account for the effects of compounding. Consider using <a href=\"https:\/\/www.investopedia.com\/terms\/c\/cagr.asp\" rel=\"nofollow noopener\" target=\"_blank\">compound annual growth<\/a> rate to account for compounding effects.<\/p>\n<\/p><\/div>\n<div class=\"select-field-content form-field-content\">\n<div class=\"form-group\">\n   <label> Would you like to calculate the compound annual growth rate? <\/label><br \/>\n   <select disabled class=\"form-control\"><option value=\"An option will be selected here\">An option will be selected here<\/option><\/select>\n  <\/div>\n<\/p><\/div>\n<div class=\"text-content\">\n<h4 style=\"text-align: center;\">Use your average percentage growth rate to extrapolate growth rates into the future&nbsp;<\/h4>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Using your current revenue (the closing revenue of your most recent period being considered) and multiply this by (1+ percentage growth rate)\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<div class=\"text-content\">\n<p class=\"style-info\"><a href=\"https:\/\/www.investopedia.com\/terms\/r\/revenue.asp\" rel=\"nofollow noopener\" target=\"_blank\">Revenue<\/a> is defined as the money your business will receive during a specified period and is found on the income statement, also known as sales.<\/p>\n<\/p><\/div>\n<\/section>\n<section id=\"calculating-compound-annual-growth-rate\">\n<h2>Calculating compound annual growth rate<\/h2>\n<div class=\"text-content\">\n<p><strong>Compound annual growth<\/strong> rate shows the progressive growth rate over time. Compound annual growth rate takes into account compounding effects.<\/p>\n<p><strong>See the below video<\/strong> which details how compound annual interest is calculated.<\/p>\n<\/p><\/div>\n<div class=\"video-content\">\n<div class=\"iframe-container\">\n   <iframe src=\"https:\/\/www.youtube.com\/embed\/EMhrRmse-r4?modestbranding=1&amp;showinfo=0\" frameborder=\"0\" allowfullscreen=\"true\"> <\/iframe>\n  <\/div>\n<\/p><\/div>\n<\/section>\n<section id=\"assume-your-cost-of-goods-sold\">\n<h2>Assume your cost of goods sold<\/h2>\n<div class=\"text-content\">\n<p>The <strong>next assumption<\/strong> to make in the financial planning process is the <strong>projected cost of goods sold<\/strong>.<\/p>\n<p>The <strong>dropdown menu<\/strong> provided represents a <strong>conditional step in this process<\/strong>. You will be directed to the relevant stage in this process depending on your response given.<\/p>\n<\/p><\/div>\n<div class=\"select-field-content form-field-content\">\n<div class=\"form-group\">\n   <label> Do you require assistance to calculate the cost of goods sold? <\/label><br \/>\n   <select disabled class=\"form-control\"><option value=\"An option will be selected here\">An option will be selected here<\/option><\/select>\n  <\/div>\n<\/p><\/div>\n<div class=\"text-content\">\n<h4 style=\"text-align: center;\">Calculate the cost of goods sold as a percentage&nbsp;<\/h4>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Calculate your cost of goods sold as a percentage of your total revenue for that period\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       2\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Do this for each period which actual data you are considering.\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<div class=\"text-content\">\n<h5 style=\"text-align: center;\">Cost of goods sold (% of revenue) = [ Cost of goods sold \/ revenue ] x 100<\/h5>\n<\/p><\/div>\n<div class=\"text-content\">\n<p class=\"style-info\">The <a href=\"https:\/\/www.investopedia.com\/terms\/c\/cogs.asp\" rel=\"nofollow noopener\" target=\"_blank\">cost of goods sold<\/a> is defined as the costs directly attributable to the production of the goods sold or services provided.<\/p>\n<\/p><\/div>\n<div class=\"text-content\">\n<h4 style=\"text-align: center;\">Calculate the average cost of goods sold<\/h4>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Calculate the average cost of goods sold, as a percentage of revenue, for all periods under consideration.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       2\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Use this average as the cost of goods sold as a percentage of revenue for all future periods being considered.\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<div class=\"text-content\">\n<h4 style=\"text-align: center;\">Use the cost of goods sold as a percentage of revenue to calculate the assumed cost of goods sold<\/h4>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      You have the average cost of goods sold as a percentage of revenue. Multiple your revenue forecasts by the percentage cost of goods sold. This value is your assumed cost of goods sold for the future period.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       2\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Calculate the assumed cost of goods sold for every period under consideration.\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<\/section>\n<section id=\"calculating-cost-of-goods-sold\">\n<h2>Calculating cost of goods sold<\/h2>\n<div class=\"text-content\">\n<p>Cost of goods sold are the direct costs related to the delivery of a product or service.<strong> View<\/strong>&nbsp;the file we have uploaded to assist you through the process of calculating your cost of goods sold.<\/p>\n<p><strong>Your cost of goods sold should be present on your income (profit and loss) statement.<\/strong><\/p>\n<p><strong>Alternatively,&nbsp;<\/strong>see our detailed template to be used as a guide, guidng you through the process of creating your profit and loss (income) statement, and thus finding the cost of goods sold.<\/p>\n<p><span>See &nbsp;<\/span><a href=\"https:\/\/www.process.st\/\" rel=\"nofollow\"><span>Process Street<\/span><\/a><span>\u2019s&nbsp;<\/span><a href=\"https:\/\/www.process.st\/templates\/income-profit-and-loss-statement-process\/\" rel=\"nofollow\"><span>Income (Profit and Loss) Statement Process<\/span><\/a><\/p>\n<\/p><\/div>\n<\/section>\n<section id=\"assume-your-general-and-administrative-expenses\">\n<h2>Assume your general and administrative expenses<\/h2>\n<div class=\"text-content\">\n<p>Take your <a href=\"https:\/\/www.investopedia.com\/terms\/g\/general-and-administrative-expenses.asp\" rel=\"nofollow noopener\" target=\"_blank\"><strong>general and administrative expense values<\/strong> <\/a>from your income statement for each period under consideration.<\/p>\n<\/p><\/div>\n<div class=\"text-content\">\n<h4 style=\"text-align: center;\">Find your general administration expenses as a percentage of your revenue&nbsp;<\/h4>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Divide the total of your general administration expenses (SGA) by you revenue and multiply by 100, for each period, to obtain an SGA value as a percentage of revenue.\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<div class=\"text-content\">\n<h5 style=\"text-align: center;\">SGA as a percentage of revenue = [SGA\/revenue] x 100<\/h5>\n<\/p><\/div>\n<div class=\"text-content\">\n<h4 style=\"text-align: center;\">Find the average SGA as a percentage of revenue<\/h4>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Calculate an average SGA as a percentage of revenue value.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       2\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Use this average SGA as a percentage of revenue value for future periods being considered.\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<div class=\"text-content\">\n<h4 style=\"text-align: center;\">Use the SGA as a percentage of revenue to calculate the assumed SGA<\/h4>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Multiply your assumed revenue for each period by the average SGA as a percentage of revenue value\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<div class=\"text-content\">\n<p class=\"style-info\"><a href=\"https:\/\/www.investopedia.com\/terms\/s\/sga.asp\" rel=\"nofollow noopener\" target=\"_blank\">General and administrative expenses<\/a> both expenses associated with selling and more general administrative expenses.<\/p>\n<\/p><\/div>\n<\/section>\n<section id=\"assume-depreciation\">\n<h2>Assume depreciation<\/h2>\n<div class=\"text-content\">\n<p>Depreciation is usually not revenue driven. Depreciation is usually as a <strong>percentage of net Property and Equipment (net PPE).&nbsp;<\/strong><\/p>\n<p>Net PPE as a value can be<strong> found on your balance sheet<\/strong> for each period under consideration.<\/p>\n<p><span>See &nbsp;<\/span><a href=\"https:\/\/www.process.st\/\" rel=\"nofollow\"><span>Process Street<\/span><\/a><span>\u2019s&nbsp;<\/span><a href=\"https:\/\/www.process.st\/templates\/balance-sheet-statement-preparation-checklist\" rel=\"nofollow\"><span>Balance Sheet Statement Preparation Checklist<\/span><\/a><\/p>\n<p><span>You are presented with our <strong>dropdown form field<\/strong> which represents a<strong> conditional step<\/strong> in this process. You will be directed to the relevant stage in this Financial Planning Process dependent on your response.<\/span><\/p>\n<\/p><\/div>\n<div class=\"select-field-content form-field-content\">\n<div class=\"form-group\">\n   <label> Do you require assistance in calculating your depreciation and amatorization values? <\/label><br \/>\n   <select disabled class=\"form-control\"><option value=\"An option will be selected here\">An option will be selected here<\/option><\/select>\n  <\/div>\n<\/p><\/div>\n<div class=\"text-content\">\n<h4 style=\"text-align: center;\">Obtain your depreciation and amortization values<\/h4>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      From you income statement, obtain the sum value for depreciation and amortization.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       2\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Obtain the net PPE value for the end of the period before the period under consideration.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       3\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Obtain the net PPE value for the end of the period under consideration.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       4\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Sum these two net PPE values and divide by two to obtain an average across the period under consideration.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       5\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Divide the sum depreciation and amortization by average net PPE.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       6\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Multiple by 100 to obtain a percentage value for depreciation.\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<div class=\"text-content\">\n<p class=\"style-danger\">The net PPE represents the net Property and Equipment value at the end of the year. Therefore you must <strong>take the sum depreciation and amortization values within the period under consideration and divide by the periods before sum depreciation and amortization<\/strong>.<\/p>\n<\/p><\/div>\n<div class=\"text-content\">\n<h4 style=\"text-align: center;\">Calculate an average percentage depreciation&nbsp;<\/h4>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Calculate an average percentage depreciation as a percentage of net PPE using your historical data.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       2\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Use this average as an assumed depreciation as a percentage of net PPE value for future periods being considered.\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<div class=\"text-content\">\n<p class=\"style-info\"><a href=\"https:\/\/www.investopedia.com\/terms\/d\/depreciation.asp\" rel=\"nofollow noopener\" target=\"_blank\">Depreciation<\/a> is defined as the reduction of tangible assets over time due to particular wear and tear.<\/p>\n<p class=\"style-info\"><a href=\"https:\/\/ycharts.com\/glossary\/terms\/net_ppe\" rel=\"nofollow noopener\" target=\"_blank\">Net Property and Equipment<\/a> is the total value of land, furniture, buildings, machinery, and other physical capital.<\/p>\n<p class=\"style-info\"><a href=\"https:\/\/www.investopedia.com\/ask\/answers\/06\/amortizationvsdepreciation.asp\" rel=\"nofollow noopener\" target=\"_blank\">Amortization<\/a> is the process of spreading intangibles asset costs over the assets useful life. Amortization typically is an expensed on a straight-line basis, meaning the same value is deducted each time. The assets expensed using the amortization method typically do not have resale or salvage value.&nbsp;<\/p>\n<\/p><\/div>\n<\/section>\n<section id=\"calculate-depreciation-and-amortization\">\n<h2>Calculate depreciation and amortization<\/h2>\n<div class=\"text-content\">\n<p>Depreciation and amortization are costs incurred on your fixed intangible and tangible assets through use and time.<\/p>\n<p><strong>View<\/strong>&nbsp;the file we have uploaded to assist you through the process of calculating depreciation and amortization.<\/p>\n<p><strong>Depreciation and amortization should be present on your income (profit and loss) statement.<\/strong><\/p>\n<p><strong>Alternatively,&nbsp;<\/strong>see our detailed template you can use to guide you through the process of creating your profit and loss (income) statement, and thus finding the cost of goods sold.<\/p>\n<p><span>See &nbsp;<\/span><a href=\"https:\/\/www.process.st\/\" rel=\"nofollow\"><span>Process Street<\/span><\/a><span>\u2019s&nbsp;<\/span><a href=\"https:\/\/www.process.st\/templates\/income-profit-and-loss-statement-process\/\" rel=\"nofollow\"><span>Income (Profit and Loss) Statement Process<\/span><\/a><\/p>\n<\/p><\/div>\n<\/section>\n<section id=\"assume-interest-expense\">\n<h2>Assume interest expense<\/h2>\n<div class=\"text-content\">\n<p><strong>Interest expense is driven by balance sheet values<\/strong>, such as long term debt and what your companies interest rate is.<\/p>\n<\/p><\/div>\n<div class=\"text-content\">\n<h4 style=\"text-align: center;\">Consult your financial statements&nbsp;<\/h4>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Note your interest expense for each time period\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       2\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Note your interest rate for each time period\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       3\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Note how much debt you have for each time period\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<div class=\"text-content\">\n<h4 style=\"text-align: center;\">Calculate interest expense as a percentage of your total long term debt<\/h4>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Obtain a value for your total long term debt from your balance sheet for the end of the period before the period under consideration.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       2\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Obtain a value for your long term debt from your balance sheet for the end of the period under consideration.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       3\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Sum the two long term debt values\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       4\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Divide the sum by two to obtain an average long term debt value across the period of time under consideration.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       5\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Divide the interest expense by this average long term debt value for each time period being considered\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<div class=\"text-content\">\n<h4 style=\"text-align: center;\">Calculate an average interest expense as a percentage of your total long term debts<\/h4>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Calculate an average interest expense as a percentage of your total earnings using your historical data.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       2\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Use this average interest expense as a percentage of your total long term debts for future time periods being forecast.\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<div class=\"text-content\">\n<p class=\"style-info\">The<a href=\"https:\/\/www.investopedia.com\/terms\/i\/interestexpense.asp\" rel=\"nofollow noopener\" target=\"_blank\"> interest expense<\/a> is a non-operating expense shown on the income statement. The interest expense represents interest payable on borrowings such as bond or loans.<\/p>\n<\/p><\/div>\n<\/section>\n<section id=\"assume-unusual-items\">\n<h2>Assume unusual items<\/h2>\n<div class=\"text-content\">\n<p><a href=\"https:\/\/smallbusiness.chron.com\/mean-company-unusual-expenses-its-income-statement-21525.html\" rel=\"nofollow noopener\" target=\"_blank\">Unusual items<\/a> include <strong>discontinued operation, extraordinary items and changes in the accounting principles<\/strong>. Unusual items should be found as an expense on your income (profit and loss) statement.<\/p>\n<\/p><\/div>\n<div class=\"text-content\">\n<h4 style=\"text-align: center;\">Calculate unusual items as a percentage of your revenue&nbsp;<\/h4>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Consult your balance sheet for each time period to find the total expense for unusual items\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       2\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Divide the total expense for unusual items by the revenue\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       3\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Multiple by 100 to obtain the value as a percentage.\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<div class=\"text-content\">\n<h4 style=\"text-align: center;\">Assume unusual item expenses&nbsp;<\/h4>\n<\/p><\/div>\n<div class=\"text-content\">\n<p>You <strong>can calculate an average for unusual item expenses<\/strong> and use this as the unusual item expense to project into the future, <strong>or<\/strong> you can <strong>set unusual item expenses to 0<\/strong>, assuming you will incur no unusual costs for the future time periods under consideration.<\/p>\n<\/p><\/div>\n<div class=\"select-field-content form-field-content\">\n<div class=\"form-group\">\n   <label> Forecast unusual item expenses by: <\/label><br \/>\n   <select disabled class=\"form-control\"><option value=\"An option will be selected here\">An option will be selected here<\/option><\/select>\n  <\/div>\n<\/p><\/div>\n<\/section>\n<section id=\"assume-tax-rate\">\n<h2>Assume tax rate<\/h2>\n<div class=\"text-content\">\n<p>Your <strong>tax expenses<\/strong> can be found as an expense on your income (profit and loss) statement. Consult this statement to obtain a value for your tax expenses.<\/p>\n<\/p><\/div>\n<div class=\"text-content\">\n<h4 style=\"text-align: center;\">Calculate tax expense as a percentage of your earnings before taxes<\/h4>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Divide you tax expense by your earnings before taxes for each time period\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       2\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Multiply by 100 to obtain the value as a percentage\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<div class=\"text-content\">\n<h4 style=\"text-align: center;\">Calculate an average tax expense&nbsp;<\/h4>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Calculate an average tax expense using the historical tax expenses values as a percentage of earnings before taxes\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       2\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Use this average tax expense as a percentage of earnings before tax for future time periods being considered.\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<div class=\"text-content\">\n<p class=\"style-info\"><a href=\"https:\/\/www.investopedia.com\/terms\/t\/taxrate.asp\" rel=\"nofollow noopener\" target=\"_blank\">Tax rate<\/a> is the percentage at which a corporation is taxed.<\/p>\n<\/p><\/div>\n<\/section>\n<section id=\"communicate-your-assumptions\">\n<h2>Communicate your assumptions<\/h2>\n<div class=\"text-content\">\n<p>You need to make sure you<strong> communicate your assumptions<\/strong> made.<\/p>\n<p>This is a <strong>stop task<\/strong>, you cannot move forward in this template until your assumptions are clearly defined as such.<\/p>\n<p>These assumptions made are basic assumptions to show you the process. Please note&nbsp;<strong>you can add your own methods to this template using our <a href=\"https:\/\/www.process.st\/help\/docs\/editing-templates\/\" rel=\"nofollow noopener\" target=\"_blank\">edit template feature<\/a><\/strong>&nbsp;for the specific assumptions you will make for your business.<\/p>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      You have clearly defined and outlined you assumptions\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<\/section>\n<section id=\"state-assumptions-using-your-balance-sheet\">\n<h2>State assumptions using your balance sheet:<\/h2>\n<div class=\"image-content\">\n<figure>\n   <a href=\"https:\/\/www.process.st\/templates\/wp-content\/uploads\/2024\/02\/sgYiuyYgbvpVLRuBqMtBCg.jpg\" alt=\"State assumptions using your balance sheet:\" target=\"_blank\" rel=\"noopener\"> <img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/www.process.st\/templates\/wp-content\/uploads\/2024\/02\/sgYiuyYgbvpVLRuBqMtBCg.jpg\"> <\/a><br \/>\n  <\/figure>\n<\/p><\/div>\n<\/section>\n<section id=\"assume-accounts-receivable\">\n<h2>Assume accounts receivable<\/h2>\n<div class=\"text-content\">\n<p><strong>Accounts receivable<\/strong> depends on how much you are selling and is therefore<strong> dependent on revenue<\/strong>.<\/p>\n<p>You can obtain account receivable values from the balance sheet. You will also require revenue values which you can obtain from the income statement.<\/p>\n<p>The final task under this heading 'State assumptions using your balance sheet' is a <strong>stop task<\/strong>, you cannot move forward in this template until your assumptions are clearly defined as such.<\/p>\n<\/p><\/div>\n<div class=\"text-content\">\n<h4 style=\"text-align: center;\">Calculate accounts receivable as a percentage of revenue<\/h4>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Calculate an average of your accounts receivable for the time period being considered, that is, the average of the accounts receivable from the previous time period and the accounts receivable from the time period being considered.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       2\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Divide the accounts receivable value by the revenue for that time period. Obtain a revenue value from your income statement.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       3\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Multiply the value by 100 to obtain a percentage value. The value will be accounts receivable as a percentage of revenue.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       4\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Repeat the above steps for each time period being considered.\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<div class=\"text-content\">\n<h4 style=\"text-align: center;\">Calculate the average accounts receivable as a percentage of revenue<\/h4>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Calculate an average across all the time periods considered for accounts receivable as a percentage of revenue.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       2\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Use this average as a forecast for accounts receivable as a percentage of revenue, for future time periods being considered.\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<div class=\"text-content\">\n<p class=\"style-info\"><a href=\"https:\/\/www.investopedia.com\/terms\/a\/accountsreceivable.asp\" rel=\"nofollow noopener\" target=\"_blank\">Accounts receivable<\/a> is defined as the money owed to a company by its debtors.<\/p>\n<\/p><\/div>\n<\/section>\n<section id=\"assume-inventory\">\n<h2>Assume inventory<\/h2>\n<div class=\"text-content\">\n<p>Inventory is <strong>presented as a percentage of the cost of goods sold<\/strong>.<\/p>\n<p>Your inventory values can be obtained from your balance sheet.&nbsp;Your cost of goods sold values can be obtained from the income statement.<\/p>\n<\/p><\/div>\n<div class=\"text-content\">\n<h4 style=\"text-align: center;\">Calculate inventory as a percentage of cost of goods sold<\/h4>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Divide the inventory value by the cost of goods sold.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       2\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Multiple the output value by 100 to obtain a percentage value.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       3\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      The percentage value is the inventory as a percentage of cost of goods sold.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       4\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Repeat the above tasks for each time period being considered.\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<div class=\"text-content\">\n<h4 style=\"text-align: center;\">Calculate the average inventory as a percentage of cost of goods sold<\/h4>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Calculate an average across all the time periods considered for inventory as a percentage of the cost of goods sold.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       2\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Use this average as a forecast for inventory as a percentage of the cost of goods sold, for future time periods being considered.\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<\/section>\n<section id=\"assume-other-current-assets\">\n<h2>Assume other current assets<\/h2>\n<div class=\"text-content\">\n<p><strong>Current assets&nbsp;<\/strong>depend on how much you are selling and is therefore<strong> dependent on revenue<\/strong>.<\/p>\n<p>You can obtain current assets values from the balance sheet. You will also require revenue values which you can obtain from the income statement.<\/p>\n<\/p><\/div>\n<div class=\"text-content\">\n<h4 style=\"text-align: center;\">Calculate current assets as a percentage of revenue<\/h4>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Divide the other current assets value by revenue.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       2\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Multiply this value by 100 to obtain a percentage value.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       3\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      The percentage value represents current assets as a percentage of revenue. Repeat the above steps for each time period being considered.\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<div class=\"text-content\">\n<h4 style=\"text-align: center;\">Calculate the average current assets as a percentage of revenue<\/h4>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Calculate an average across all the time periods considered for current assets as a percentage of revenue.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       2\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Use this average as a forecast for current assets as a percentage of revenue, for future time periods being considered.\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<\/section>\n<section id=\"assume-accounts-payable\">\n<h2>Assume accounts payable<\/h2>\n<div class=\"text-content\">\n<p><strong>Accounts payable<\/strong>&nbsp;is <strong>dependent on the cost of goods sold<\/strong>.<\/p>\n<p>You can obtain account payable values from the balance sheet. You will also require cost of goods sold values which you can obtain from the income statement.<\/p>\n<\/p><\/div>\n<div class=\"text-content\">\n<h4 style=\"text-align: center;\">Calculate accounts payable as a percentage of the cost of goods sold<\/h4>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Divide accounts payable by costs of goods sold.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       2\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Multiply this value by 100 to obtain accounts payable as a percentage of costs of goods sold.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       3\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Repeat the above steps for each time period being considered.\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<div class=\"text-content\">\n<h4 style=\"text-align: center;\">Calculate the average current assets as a percentage of the cost of goods sold<\/h4>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Calculate an average across all the time periods considered for accounts payable as a percentage of the cost of goods sold.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       2\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Use this average as a forecast for accounts payable as a percentage of the cost of goods sold, for future time periods being considered.\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<div class=\"text-content\">\n<p class=\"style-info\">Revenue ultimately drives every assumption so far considered.<\/p>\n<\/p><\/div>\n<\/section>\n<section id=\"state-assumptions-using-your-cash-flow\">\n<h2>State assumptions using your cash flow:<\/h2>\n<div class=\"image-content\">\n<figure>\n   <a href=\"https:\/\/www.process.st\/templates\/wp-content\/uploads\/2024\/02\/qGhMW7Ni3mZFt9NSoBFGIg.jpg\" alt=\"State assumptions using your cash flow:\" target=\"_blank\" rel=\"noopener\"> <img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/www.process.st\/templates\/wp-content\/uploads\/2024\/02\/qGhMW7Ni3mZFt9NSoBFGIg.jpg\"> <\/a><br \/>\n  <\/figure>\n<\/p><\/div>\n<\/section>\n<section id=\"assume-your-capital-expenditure\">\n<h2>Assume your capital expenditure<\/h2>\n<div class=\"text-content\">\n<p><strong>Capital expenditures drive revenue forward.<\/strong><\/p>\n<p>The final task under this heading 'State assumptions using your cash flow' is a stop task, you cannot move forward in this template until your assumptions are clearly defined as such.<\/p>\n<p class=\"style-warning\">You must ensure capital expenditure values are negative, as they cost money in the cash flow statement.<\/p>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Consult your calculated percentage growth rate.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       2\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      If you are assuming x% growth, you assume your net PPE will grow by an equal % over the time period being considered.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       3\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      You will consider the capital expenditures as a percentage of net PPE, use the same X% for this.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       4\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Consult the % depreciation and amortization. For capital expenditure to grow, the % growth of capital expenditure has to be greater than the % depreciation and amortization.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       5\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Adjust your % capital expenditure to fit the patterns in your companies data.\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<div class=\"text-content\">\n<p class=\"style-info\"><a href=\"https:\/\/www.investopedia.com\/terms\/c\/capitalexpenditure.asp\" rel=\"nofollow noopener\" target=\"_blank\">Capital expenditure<\/a> is defined as the money spent by a business or an organization on acquiring fixed assets.<\/p>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Adjust your % capital expenditure to fit the patterns in your companies data.\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<div class=\"text-content\">\n<p class=\"style-info\">If you have a growth rate, and thus capital growth rate of 5% each year, but depreciation and amortization of 10% each year, your capital growth rate would have to be 15% each year to have an annual growth rate of 5%.<\/p>\n<p class=\"style-danger\">The above is a very basic way of forecasting your capital expenditure. If you are building a more complex model, consider alternative ways to forecast capital expenditure.<\/p>\n<\/p><\/div>\n<\/section>\n<section id=\"assume-your-debt-insurance\">\n<h2>Assume your debt insurance<\/h2>\n<div class=\"text-content\">\n<p>You can <strong>locate the net debt insurance\/repurchase<\/strong> on the <strong>cash flow statement<\/strong>.<\/p>\n<p><span>See &nbsp;<\/span><a href=\"https:\/\/www.process.st\/\" rel=\"nofollow\"><span>Process Street<\/span><\/a><span>\u2019s&nbsp;<\/span><a href=\"https:\/\/www.process.st\/templates\/cash-flow-report\" rel=\"nofollow\"><span>Cash Flow Report<\/span><\/a>.<span><\/span><span><\/span><\/p>\n<p>Consult the cash flow statement for all past time periods under consideration, and check off the tasks below.<\/p>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Average the net debt insurance\/repurchase\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       2\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Use this average obtained from your historical data as a forecast for the debt insurance\/repurchase for the future time periods under consideration.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       3\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Repeat for all future time periods being considered.\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<\/section>\n<section id=\"assume-you-equity-insurance\">\n<h2>Assume you equity insurance<\/h2>\n<div class=\"text-content\">\n<p>For simplicity,<strong> assume your equity insurance remains the same so set your forecast values to zero<\/strong>.<\/p>\n<p>When producing a model, it is<strong> better to begin simple<\/strong> and to then <strong>build up the complexity<\/strong> with time as you receive more and more information.&nbsp;<\/p>\n<\/p><\/div>\n<\/section>\n<section id=\"assume-your-cash-from-dividends\">\n<h2>Assume your cash from dividends<\/h2>\n<div class=\"text-content\">\n<p>For simplicity, <strong>assume your dividends remain the same so set your forecast values to zero<\/strong>.<\/p>\n<\/p><\/div>\n<\/section>\n<section id=\"project-forwards-for-income-statement\">\n<h2>Project forwards for income statement:<\/h2>\n<div class=\"image-content\">\n<figure>\n   <a href=\"https:\/\/www.process.st\/templates\/wp-content\/uploads\/2024\/02\/tt3_WWHQxpI70FJX_0lGXA.jpg\" alt=\"Project forwards for income statement:\" target=\"_blank\" rel=\"noopener\"> <img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/www.process.st\/templates\/wp-content\/uploads\/2024\/02\/tt3_WWHQxpI70FJX_0lGXA.jpg\"> <\/a><br \/>\n  <\/figure>\n<\/p><\/div>\n<\/section>\n<section id=\"calculate-the-gross-profit\">\n<h2>Calculate the gross profit<\/h2>\n<div class=\"text-content\">\n<p>We have already obtained forecasts for revenue and cost of goods sold.<\/p>\n<p>We can now <strong>use our assumptions made to make predictions for the remaining financial parameters on the income statement.<\/strong><\/p>\n<p>Firstly we can use our projected value for revenue and cost of goods sold to obtain gross profit projections for future years.&nbsp;<\/p>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Minus the projected cost of goods sold values from the projected revenue values.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       2\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Do this for each future time period being considered to obtain forecast gross profit values.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       3\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Add forecast gross profit to the income statement.\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<\/section>\n<section id=\"forecast-sga-costs\">\n<h2>Forecast SGA costs<\/h2>\n<div class=\"text-content\">\n<p>Your <strong>forecast SGA values<\/strong> were <strong>calculated as a percentage of revenue<\/strong>.<\/p>\n<p>You can use your projected revenue values to project SGA costs.<\/p>\n<p>Carry out the below steps to forecast the SGA costs.<\/p>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Multiply the revenue by the 'forecast SGA as a percentage of revenue' values for each future time period being considered.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       2\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Add the forecast SGA values to the income statement.\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<\/section>\n<section id=\"forecast-depreciation-and-amortization-costs\">\n<h2>Forecast depreciation and amortization costs<\/h2>\n<div class=\"text-content\">\n<p>You have&nbsp;<strong>forecast deprecation and amortization costs <\/strong><strong>as a percentage of net PPE.&nbsp;<\/strong><\/p>\n<p>You can use your projected <strong>net PPE values<\/strong> to forecast depreciation and amortization.<\/p>\n<p>Carry out the below steps to forecast the accounts payable.<\/p>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Multiple your 'depreciation and amortization costs as a percentage of net PPE' by the most recent net PPE value, which can be found on your balance sheet.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       2\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Repeat for every future time period being considered.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       3\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Add the forecast values to the income statement.\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<div class=\"text-content\">\n<h4 style=\"text-align: center;\">Add forecast depreciation values to accumulated depreciation&nbsp;<\/h4>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Add the negative signed forecast for depreciation and amortization cost to the previous time periods accumulative deprecation value from the balance sheet.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       2\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Repeat for all future time periods being considered.\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<\/section>\n<section id=\"forecast-long-term-debt\">\n<h2>Forecast long term debt<\/h2>\n<div class=\"text-content\">\n<p>You estimated a forecast your debt insurance\/repurchase values from <strong>the average historical debt insurance\/repurchase values.<\/strong><\/p>\n<p>You can use your debt insurance\/repurchase values to <strong>forecast long term debt<\/strong>.&nbsp;<\/p>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Take the debt insurance\/repurchase from the most recent time period being considered and add forecast debt insurance.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       2\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Add the forecast debt insurance values to the balance sheet, projecting forward for each time period being considered.\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<\/section>\n<section id=\"forecast-net-interest-expense\">\n<h2>Forecast net interest expense<\/h2>\n<div class=\"text-content\">\n<p>To <strong>forecast net interest expenses<\/strong> you use the 'depreciation and amortization as a percentage of net PPE' values previously calculated and the long term debt values obtained from the balance sheet.<\/p>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Multiply the 'depreciation and amortization as a percentage of net PPE' by the long term debt values for each future time period being considered.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       2\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Add forecast interest expenses to the income statement.\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<\/section>\n<section id=\"forecast-operating-income\">\n<h2>Forecast operating income<\/h2>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Consult your forecast gross profit values previously calculated.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       2\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Sum forecast SGA and Depreciation and Amortization costs.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       3\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Minus above costs from the forecast gross profit for each time period.\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<div class=\"text-content\">\n<p class=\"style-info\"><a href=\"https:\/\/www.investopedia.com\/terms\/o\/operatingincome.asp\" rel=\"nofollow noopener\" target=\"_blank\">Operating income<\/a> is defined as the profit realized from a business's operations.<\/p>\n<\/p><\/div>\n<\/section>\n<section id=\"forecast-unusual-items\">\n<h2>Forecast unusual items<\/h2>\n<div class=\"text-content\">\n<p>We <strong>previously assumed<\/strong>&nbsp;unusual item expenses would be<strong> equal to zero<\/strong>.<\/p>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Add the unusual item expenses to the income statement as a value of zero.\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<\/section>\n<section id=\"forecast-earnings-before-taxes\">\n<h2>Forecast earnings before taxes<\/h2>\n<div class=\"text-content\">\n<p>Using our previously calculated operating income, we can <strong>calculate the forecasted earnings before taxes.&nbsp;<\/strong><\/p>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Sum net interest expenses and unusual item costs (which is assumed to be equal to zero).\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       2\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Minus these expenses from the operating income.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       3\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Perform the same calculation for each future time period under consideration.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       4\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Add the forecast earnings before taxes to the income statement.\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<\/section>\n<section id=\"forecast-tax-expenses\">\n<h2>Forecast tax expenses<\/h2>\n<div class=\"text-content\">\n<p>You can then use your earnings before taxes value, and your previously calculated tax rate, to <strong>calculate your tax expenses<\/strong>.&nbsp;<\/p>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Multiply your tax rate as a percentage of tax expenses\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       2\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Repeat this calculation for each future time period under consideration.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       3\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Enter the forecast tax expenses to your income statement\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<\/section>\n<section id=\"forecast-net-income\">\n<h2>Forecast net income<\/h2>\n<div class=\"text-content\">\n<p>We have forecast the earnings before taxes and the tax expenses, which means we can now <strong>forecast the net income<\/strong>.<\/p>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Minus forecast tax expense from forecast earnings before taxes to obtain a forecast for net income.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       2\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Repeat this calculation for each future time period under consideration.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       3\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Add net income forecasts to the income statement.\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<\/section>\n<section id=\"project-forwards-for-the-balance-sheet\">\n<h2>Project forwards for the balance sheet:<\/h2>\n<div class=\"image-content\">\n<figure>\n   <a href=\"https:\/\/www.process.st\/templates\/wp-content\/uploads\/2024\/02\/qH_SWzENdbl0EjeBTRlDWw.jpg\" alt=\"Project forwards for the balance sheet:\" target=\"_blank\" rel=\"noopener\"> <img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/www.process.st\/templates\/wp-content\/uploads\/2024\/02\/qH_SWzENdbl0EjeBTRlDWw.jpg\"> <\/a><br \/>\n  <\/figure>\n<\/p><\/div>\n<\/section>\n<section id=\"forecast-capital-expenditure\">\n<h2>Forecast capital expenditure<\/h2>\n<div class=\"text-content\">\n<p>You have assumed an<strong>&nbsp;X% growth in net PPE<\/strong>, we need to <strong>find how much capital expenditure<\/strong> is needed.<\/p>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Multiply the previous periods net PPE by X%.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       2\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Repeat the above for all time periods being considered in your future forecasts.\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<div class=\"text-content\">\n<h4 style=\"text-align: center;\">Use capital expenditure to forecast PPE costs&nbsp;&nbsp;<\/h4>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Use your latest PPE cost to forecast your PPE cost into the future for the next time period under consideration.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       2\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Add your capital expenditure (which should be a negative value) to your latest PPE cost.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       3\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Repeat for all future time periods being considered.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       4\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Add the forecast net PPE costs to the balance sheet.\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<div class=\"text-content\">\n<p class=\"style-info\">PPE cost differs from net PPE cost. PPE cost is the cost of Property and Equipment with depreciation accounted for.<\/p>\n<\/p><\/div>\n<\/section>\n<section id=\"forecast-accounts-receivable\">\n<h2>Forecast accounts receivable<\/h2>\n<div class=\"text-content\">\n<p>Your <strong>forecast accounts receivable values<\/strong> were <strong>calculated as a percentage of revenue<\/strong>.<\/p>\n<p>You can use your projected revenue values to project accounts receivable.<\/p>\n<p>Carry out the below steps to forecast the accounts receivable.<\/p>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Multiply the revenue by the 'forecast accounts receivable as a percentage of revenue' values for each future time period being considered.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       2\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Add the forecast accounts receivable values to the balance sheet.\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<\/section>\n<section id=\"forecast-other-current-assets\">\n<h2>Forecast other current assets<\/h2>\n<div class=\"text-content\">\n<p>Your <strong>forecast other current asset values<\/strong> were <strong>calculated as a percentage of revenue<\/strong>.<\/p>\n<p>You can use your projected revenue values to project current assets.<\/p>\n<p>Carry out the below steps to forecast the current assets.<\/p>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Multiply the revenue by the 'current assets as a percentage of revenue' values for each future time period being considered.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       2\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Add the forecast current asset values to the balance sheet.\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<\/section>\n<section id=\"forecast-inventory\">\n<h2>Forecast inventory<\/h2>\n<div class=\"text-content\">\n<p>Your <strong>forecast inventory values<\/strong> were <strong>calculated as a percentage of the cost of goods sold<\/strong>.<\/p>\n<p>You can use your projected the cost of goods sold values to project inventory.<\/p>\n<p>Carry out the below steps to forecast the inventory.<\/p>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Multiply the revenue by the 'inventory as a percentage of revenue' values for each future time period being considered.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       2\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Add the forecast inventory values to the balance sheet.\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<\/section>\n<section id=\"forecast-accounts-payable\">\n<h2>Forecast accounts payable<\/h2>\n<div class=\"text-content\">\n<p>Your <strong>forecast accounts payable values&nbsp;<\/strong>were <strong>calculated as a percentage of the cost of goods sold<\/strong>.<\/p>\n<p>You can use your projected the cost of goods sold values to project accounts payable.<\/p>\n<p>Carry out the below steps to forecast the accounts payable.<\/p>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Multiply the revenue by the 'accounts payable as a percentage of the cost of goods sold' values for each future time period being considered.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       2\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Add the accounts payable values to the balance sheet.\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<\/section>\n<section id=\"project-forwards-for-the-cash-flow-statement\">\n<h2>Project forwards for the cash flow statement:<\/h2>\n<div class=\"image-content\">\n<figure>\n   <a href=\"https:\/\/www.process.st\/templates\/wp-content\/uploads\/2024\/02\/jPitmNNpJyV4t5v5_X5F4Q.jpg\" alt=\"Project forwards for the cash flow statement:\" target=\"_blank\" rel=\"noopener\"> <img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/www.process.st\/templates\/wp-content\/uploads\/2024\/02\/jPitmNNpJyV4t5v5_X5F4Q.jpg\"> <\/a><br \/>\n  <\/figure>\n<\/p><\/div>\n<\/section>\n<section id=\"add-the-required-information-from-the-income-statement-to-the-cash-flow-statement\">\n<h2>Add the required information from the income statement to the cash flow statement<\/h2>\n<div class=\"text-content\">\n<p>You have<strong> now finished a forecast income statement<\/strong>, which is one piece of the puzzle completed.<\/p>\n<p>The next stage in this financial planning process is to <strong>complete a forecast of the cash flow statement<\/strong>.<\/p>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Add your forecast net income values from the income statement to the cash flow statement for each future time period being considered.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       2\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Add your forecast depreciation costs from the income statement to the cash flow statement for each future time period being considered.\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<\/section>\n<section id=\"forecast-receivables\">\n<h2>Forecast receivables<\/h2>\n<div class=\"text-content\">\n<p>In the cash flow statement, we are looking at the <strong>change in receivables<\/strong>.<\/p>\n<p>If the receivable value decreases then it is a source of cash, and if the receivable value increases then it is a use of cash.<\/p>\n<p>You can use your forecasted accounts receivables from the balance sheet to<strong> forecast the receivables in the cash flow statement.<\/strong><\/p>\n<p>You need to consider the receivable values in the balance sheet from the current time period being considered and the former time period.<\/p>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Minus the most recent receivable value from the former receivable value.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       2\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Repeat for each future time period being considered.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       3\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Add the forecast receivables to the cash flow statement.\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<div class=\"text-content\">\n<p class=\"style-danger\">Despite the fact receivables are an asset to the business, you do not want a high receivable value as this indicates there is money owed to your business.&nbsp;<\/p>\n<\/p><\/div>\n<\/section>\n<section id=\"forecast-inventory-2\">\n<h2>Forecast Inventory<\/h2>\n<div class=\"text-content\">\n<p>If the<strong> inventory goes up then this is a use of cash<\/strong>.&nbsp;<\/p>\n<p>You can use your forecasted inventory values from the balance sheet to forecast the inventory in the cash flow statement.<\/p>\n<p>You <strong>need to consider the inventory values in the balance sheet<\/strong> from the current time period being considered and the former time period.<\/p>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Minus the most recent inventory value from the former inventory value.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       2\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Repeat for each future time period being considered.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       3\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Add the forecast receivables to the cash flow statement.\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<\/section>\n<section id=\"forecast-account-payable\">\n<h2>Forecast account payable<\/h2>\n<div class=\"text-content\">\n<p>You can use your forecasted account payable values from the balance sheet to <strong>forecast the inventory in the cash flow statement.<\/strong><\/p>\n<p>You <strong>need to consider the payable values<\/strong> in the balance sheet from the current time period being considered and the former time period.<\/p>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Minus the most recent account payable value from the former accounts payable value.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       2\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Repeat for each future time period being considered.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       3\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Add the forecast receivables to the cash flow statement.\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<\/section>\n<section id=\"forecast-other-items\">\n<h2>Forecast other items<\/h2>\n<div class=\"text-content\">\n<p>Other items such as<strong> 'other cash flow operations<\/strong>' or <strong>'other financing activity'<\/strong> are assumed to <strong>remain at zero<\/strong> for simplicity.<\/p>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Forecast 'other items' as zero\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<\/section>\n<section id=\"forecast-cash-flow-from-operations\">\n<h2>Forecast cash flow from operations<\/h2>\n<div class=\"text-content\">\n<p><strong>Sum the following forecasts<\/strong> for each time period under consideration to forecast the cash from operations.<\/p>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Net income\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       2\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Depreciation\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       3\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Receivables\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       4\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Inventory\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       5\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Accounts payables\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       6\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Other\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<\/section>\n<section id=\"forecast-cash-from-investing\">\n<h2>Forecast cash from investing<\/h2>\n<div class=\"text-content\">\n<p>To <strong>forecast the cash from investing<\/strong>, you need to account for the previously forecasted capital expenditure.<\/p>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Sum the capital expenditure with other items\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<\/section>\n<section id=\"forecast-cash-from-financing\">\n<h2>Forecast cash from financing<\/h2>\n<div class=\"text-content\">\n<p>To find the <strong>forecast cash from financing value<\/strong>, sum the following forecast values:<\/p>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Net debt insurance\/repurchases\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       2\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Net Equity insurance\/repurchase\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       3\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Dividends\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       4\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Other financing activity\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<\/section>\n<section id=\"forecast-preforward-transactions-change-in-cash\">\n<h2>Forecast pre-forward transactions change in cash<\/h2>\n<div class=\"text-content\">\n<p>To calculate the <strong>forecasted pre-forward transactions change in cash<\/strong>, calculate the sum of the following:<\/p>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Cash flow from operations\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       2\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Cash flow from investing\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       3\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Cash flow from financing\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<div class=\"text-content\">\n<p><strong>Repeat the above calculation<\/strong> for each time period being considered.&nbsp;<\/p>\n<\/p><\/div>\n<\/section>\n<section id=\"forward-transactions-adjustment\">\n<h2>Forward transactions adjustment<\/h2>\n<div class=\"text-content\">\n<p>For simplicity, <strong>assume this is zero.<\/strong><\/p>\n<\/p><\/div>\n<div class=\"text-content\">\n<p class=\"style-info\">A <a href=\"http:\/\/www.businessdictionary.com\/definition\/forward-transaction.html\" rel=\"nofollow noopener\" target=\"_blank\">forward transaction<\/a> is a purchase or a sale of a good or service at a certain price for the delivery on a future date.<\/p>\n<\/p><\/div>\n<\/section>\n<section id=\"forecast-net-change-in-cash\">\n<h2>Forecast net change in cash<\/h2>\n<div class=\"text-content\">\n<p>Because we assumed the forward transaction adjustments were equal to zero, <strong>the net change in cash is equal to the pre-forward transactions change in cash already forecasted.<\/strong><\/p>\n<\/p><\/div>\n<\/section>\n<section id=\"project-forwards-for-the-balance-sheet-continue\">\n<h2>Project forwards for the balance sheet continue:<\/h2>\n<div class=\"image-content\">\n<figure>\n   <a href=\"https:\/\/www.process.st\/templates\/wp-content\/uploads\/2024\/02\/qO7lp0Gmxzb-ljTRM1B9Q.jpg\" alt=\"Project forwards for the balance sheet continue:\" target=\"_blank\" rel=\"noopener\"> <img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/www.process.st\/templates\/wp-content\/uploads\/2024\/02\/qO7lp0Gmxzb-ljTRM1B9Q.jpg\"> <\/a><br \/>\n  <\/figure>\n<\/p><\/div>\n<\/section>\n<section id=\"forecast-other-current-liabilities\">\n<h2>Forecast other current liabilities<\/h2>\n<div class=\"text-content\">\n<p><strong>No change is assumed for simplicity.&nbsp;<\/strong><\/p>\n<p><strong>Use the actual 'other current liability' value<\/strong> from the most recent time period as a forecast for all future time periods under consideration.<\/p>\n<\/p><\/div>\n<\/section>\n<section id=\"forecast-total-current-liabilities\">\n<h2>Forecast total current liabilities<\/h2>\n<div class=\"text-content\">\n<p>Use your already forecasted <strong>accounts payables values<\/strong> and the forecasted other <strong>liabilities values<\/strong> <strong>to calculate the forecasted total current liabilities<\/strong>.<\/p>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Sum the forecast accounts payable with the forecasted other liabilities.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       2\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Repeat for each time period under consideration.\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<\/section>\n<section id=\"forecast-other-long-term-liabilities\">\n<h2>Forecast other long term liabilities<\/h2>\n<div class=\"text-content\">\n<p><strong>Assume other long term liabilities stay the same for simplicity.<\/strong><\/p>\n<p>Use the actual 'long term liabilities' value from the most recent time period as a forecast for all future time periods under consideration.<\/p>\n<\/p><\/div>\n<\/section>\n<section id=\"forecast-total-liabilities\">\n<h2>Forecast total liabilities<\/h2>\n<div class=\"text-content\">\n<p>Use your already forecasted <strong>long term debt values<\/strong> and the forecasted<strong> other long-term liabilities<\/strong> values to <strong>calculate the forecasted total current liabilities.<\/strong><\/p>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Sum the forecast long term debt with the forecast other long-term liabilities and the forecast total current liabilities.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       2\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Repeat for each time period under consideration.\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<\/section>\n<section id=\"forecast-other-long-term-assets\">\n<h2>Forecast other long term assets<\/h2>\n<div class=\"text-content\">\n<p><strong>Assume other long term assets stay the same for simplicity.<\/strong><\/p>\n<p>Use the actual 'other long terms assets' value from the most recent time period as a forecast for all future time periods under consideration.<\/p>\n<\/p><\/div>\n<\/section>\n<section id=\"forecast-cash\">\n<h2>Forecast cash<\/h2>\n<div class=\"text-content\">\n<p>To forecast the cash flow for all future time periods under consideration in the balance sheet, you need to use the <strong>net change in cash<\/strong> obtained from the cash flow statement and the most recent <strong>actual cash value.<\/strong><\/p>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Sum the most recent actual cash value with the net change in cash\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<\/section>\n<section id=\"forecast-total-current-assets\">\n<h2>Forecast total current assets<\/h2>\n<div class=\"text-content\">\n<p>To find the <strong>forecast for the total current assets<\/strong>, sum the following forecast values:<\/p>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Cash\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       2\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Receivables\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       3\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Inventory\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       4\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Other current assets\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<div class=\"text-content\">\n<p><strong>Repeat for each future time period<\/strong> under consideration.<\/p>\n<\/p><\/div>\n<\/section>\n<section id=\"forecast-total-assets\">\n<h2>Forecast total assets<\/h2>\n<div class=\"text-content\">\n<p>To find the<strong> forecast for the total assets<\/strong>, sum the following forecast values:<\/p>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Other long term assets\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       2\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Net PPE\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       3\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Total current assets\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<div class=\"text-content\">\n<p><strong>Repeat for each future time period<\/strong> under consideration.<\/p>\n<\/p><\/div>\n<\/section>\n<section id=\"forecast-stock-per-capita\">\n<h2>Forecast stock per capita<\/h2>\n<div class=\"text-content\">\n<p><strong>This value is highly unlikely to change.<\/strong><\/p>\n<p>Use the <strong>actual 'stock per capita'<\/strong> value from the most recent time period as a forecast for all future time periods under consideration.<\/p>\n<\/p><\/div>\n<\/section>\n<section id=\"forecast-retained-earnings\">\n<h2>Forecast retained earnings<\/h2>\n<div class=\"text-content\">\n<p>To<strong> calculate the retained earnings<\/strong>, use the <strong>net income<\/strong> which can be obtained from the income statement.<\/p>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Use last years retained earnings plus the net income.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       2\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Repeat for each future time period under consideration.\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<\/section>\n<section id=\"forecast-minority-interest\">\n<h2>Forecast minority interest<\/h2>\n<div class=\"text-content\">\n<p><strong>No change is assumed for simplicity.&nbsp;<\/strong><\/p>\n<p>Use the actual 'minority interest' value from the most recent time period as a forecast for all future time periods under consideration.<\/p>\n<\/p><\/div>\n<\/section>\n<section id=\"forecast-total-equity\">\n<h2>Forecast total equity<\/h2>\n<div class=\"text-content\">\n<p>To calculate a forecast for<strong> total equity<\/strong>, find the sum of the below values.<\/p>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Stock per capita\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       2\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Retained earnings\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       3\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Minority interest\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<div class=\"text-content\">\n<p>Repeat for each future time period under consideration.<\/p>\n<\/p><\/div>\n<\/section>\n<section id=\"forecast-total-liability-and-equity\">\n<h2>Forecast total liability and equity<\/h2>\n<div class=\"text-content\">\n<p>To <strong>calculate a forecast for total liability and equity<\/strong>, find the sum of the below values.<\/p>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Total current liabilities\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       2\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Total liabilities\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       3\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Total equity\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<div class=\"text-content\">\n<p>Repeat for each future time period under consideration.<\/p>\n<\/p><\/div>\n<\/section>\n<section id=\"check-to-see-if-your-forecast-balance-sheet-is-balanced\">\n<h2>Check to see if your forecast balance sheet is balanced<\/h2>\n<div class=\"text-content\">\n<p>The<strong> sum of your companies assets, liabilities and equity should always balance to zero.<\/strong> If your balance sheet is not balanced, then you need to check your data.&nbsp;<\/p>\n<p>Make sure all calculations you have made are correct.<\/p>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Check to see if your forecast balance sheet is balance\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<\/section>\n<section id=\"sale-forecasts\">\n<h2>Sale forecasts:<\/h2>\n<div class=\"image-content\">\n<figure>\n   <a href=\"https:\/\/www.process.st\/templates\/wp-content\/uploads\/2024\/02\/ufUvhjeEBuRdgNeK7QRECg.jpg\" alt=\"Sale forecasts:\" target=\"_blank\" rel=\"noopener\"> <img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/www.process.st\/templates\/wp-content\/uploads\/2024\/02\/ufUvhjeEBuRdgNeK7QRECg.jpg\"> <\/a><br \/>\n  <\/figure>\n<\/p><\/div>\n<\/section>\n<section id=\"ask-yourself-key-questions\">\n<h2>Ask yourself key questions<\/h2>\n<div class=\"text-content\">\n<p class=\"style-danger\">Your sale forecasts should be consistent with the sales used in your profit and loss statement. <a href=\"https:\/\/www.preferredcfo.com\/cash-flow-reason-small-businesses-fail\/\" rel=\"nofollow noopener\" target=\"_blank\">70%<\/a> of businesses fail because they are too optimistic about the sales achievable.<\/p>\n<\/p><\/div>\n<div class=\"text-content\">\n<p>You have created forecasts of key parameters in your financial statements which can <strong>act as a first draft model<\/strong> to refine as you obtain more and more data. This next stage of the financial planning process is to <strong>refine your model<\/strong> to make it more accurate in predicting your financial future.<\/p>\n<p>By <strong>consulting your historical data<\/strong>, you now have estimates for the&nbsp;following performance measures:<\/p>\n<p>1) Net income&nbsp;<\/p>\n<p>2) Revenue<\/p>\n<p>These are key indicators defining the success of your business and are impacted by sales of your service or product.<\/p>\n<p>You can now take the time to carefully consider your sale forecasts to refine these indicators for the better prediction of your businesses future financial situation.<\/p>\n<p><span>Before building an in-depth sales forecast, ask yourself the below key questions.<\/span><\/p>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      What type of market am I working with?\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       2\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Is there precedence to what I am doing?\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       3\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Is the data I've extrapolated accurate?\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       4\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Have I tested different models?\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       5\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Which model best fits my sales process?\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<div class=\"text-content\">\n<p>The next steps of the financial plan template will <strong>explore these questions in more detail<\/strong>.<\/p>\n<\/p><\/div>\n<div class=\"text-content\">\n<p class=\"style-info\">Sale forecasts are projections or forecasts of what you think you will sell in a given period. A year to three years is the common time period considered when undertaking sale forecasts.<\/p>\n<\/p><\/div>\n<\/section>\n<section id=\"determine-your-market-segment\">\n<h2>Determine your market segment<\/h2>\n<div class=\"text-content\">\n<p>You will need to <strong>define the specific market segment<\/strong>&nbsp;your product or service delivers to. This step of the sales forecast process is to guide you through to process of defining your market segment.<\/p>\n<\/p><\/div>\n<div class=\"text-content\">\n<h4 style=\"text-align: center;\">Define your broad playing field<\/h4>\n<\/p><\/div>\n<div class=\"textarea-field-content form-field-content\">\n<div class=\"form-group\">\n   <label> Define your business sector <\/label><br \/>\n   <textarea placeholder=\"Something will be typed here...\" rows=\"3\" disabled class=\"form-control\"><\/textarea>\n  <\/div>\n<\/p><\/div>\n<div class=\"textarea-field-content form-field-content\">\n<div class=\"form-group\">\n   <label> Define the niche market you deliver to <\/label><br \/>\n   <textarea placeholder=\"Something will be typed here...\" rows=\"3\" disabled class=\"form-control\"><\/textarea>\n  <\/div>\n<\/p><\/div>\n<div class=\"text-content\">\n<p class=\"style-danger\">Without properly defining the broad playing field in which you operate, you risk undervaluing your actual market share.<\/p>\n<\/p><\/div>\n<div class=\"text-content\">\n<h4 style=\"text-align: center;\">Characteristics&nbsp;<\/h4>\n<\/p><\/div>\n<div class=\"text-content\">\n<p>The next stage of defining your market segment is to <strong>consider the below particular characteristics<\/strong>.<\/p>\n<\/p><\/div>\n<div class=\"text-content\">\n<p><strong>What is the market you are operational in like?<\/strong> Is the market growing with a steady increase, or is the market relatively new, openly volatile an full of unpredictability?&nbsp;<\/p>\n<\/p><\/div>\n<div class=\"textarea-field-content form-field-content\">\n<div class=\"form-group\">\n   <label> Define your market characteristics <\/label><br \/>\n   <textarea placeholder=\"Something will be typed here...\" rows=\"3\" disabled class=\"form-control\"><\/textarea>\n  <\/div>\n<\/p><\/div>\n<div class=\"text-content\">\n<p><strong>Are there certain times of the year where you will sell more than other times?<\/strong> For example, seasonal changes in weather, holidays.&nbsp;<\/p>\n<\/p><\/div>\n<div class=\"textarea-field-content form-field-content\">\n<div class=\"form-group\">\n   <label> Define seasonal effects on your business (if any) <\/label><br \/>\n   <textarea placeholder=\"Something will be typed here...\" rows=\"3\" disabled class=\"form-control\"><\/textarea>\n  <\/div>\n<\/p><\/div>\n<div class=\"text-content\">\n<p><strong>How do your prices compare to your competitors?<\/strong> Are you undercutting your competitor prices and the average market price, or are you substantially higher? How your prices compare to the market average will impact the volume and the value of your product or service.<\/p>\n<\/p><\/div>\n<div class=\"textarea-field-content form-field-content\">\n<div class=\"form-group\">\n   <label> How your prices compare to that of your competitors? <\/label><br \/>\n   <textarea placeholder=\"Something will be typed here...\" rows=\"3\" disabled class=\"form-control\"><\/textarea>\n  <\/div>\n<\/p><\/div>\n<div class=\"text-content\">\n<p><strong>Are there upcoming changes that could impact your business?&nbsp;<\/strong>Technological advances, changes in government legislation and environmental changes are examples of factors to consider. For example, the design of electric cars to mitigate against air pollution will impact the automotive industry.<\/p>\n<p><span>See <a href=\"https:\/\/www.process.st\/\" rel=\"nofollow noopener\" target=\"_blank\">Process Street<\/a>'s <a href=\"https:\/\/www.process.st\/templates\/environmental-accounting-internal-audit\/\" rel=\"nofollow noopener\" target=\"_blank\">Environmental Accounting Internal&nbsp;Audit&nbsp;<\/a><\/span><\/p>\n<\/p><\/div>\n<div class=\"textarea-field-content form-field-content\">\n<div class=\"form-group\">\n   <label> Define upcoming changes <\/label><br \/>\n   <textarea placeholder=\"Something will be typed here...\" rows=\"3\" disabled class=\"form-control\"><\/textarea>\n  <\/div>\n<\/p><\/div>\n<\/section>\n<section id=\"perform-quantitative-sales-forecasting\">\n<h2>Perform quantitative sales forecasting<\/h2>\n<div class=\"text-content\">\n<p>When forecasting the values for your financial statements, you need to <strong>play around with your model to obtain different possible output scenarios<\/strong>.<\/p>\n<p>You have produced a simple basic starting model that can now be refined with more in-depth assumptions.<\/p>\n<p>The three most popular sale forecast techniques to be considered have been outlined below<\/p>\n<\/p><\/div>\n<div class=\"text-content\">\n<h4 style=\"text-align: center;\">Exponential Smoothing&nbsp;<\/h4>\n<\/p><\/div>\n<div class=\"text-content\">\n<p><a href=\"http:\/\/www.businessdictionary.com\/definition\/exponential-smoothing.html\" rel=\"nofollow noopener\" target=\"_blank\">Exponential smoothing<\/a> is a statistical technique, that can <strong>detect significant changes<\/strong> in your historical data, and <strong>ignore fluctuations that are irrelevant to your purpose<\/strong>. The technique gives older data progressively less weight and newer data progressively more weight.<\/p>\n<p>You can use the exponential smoothing method to forecast the key parameters in your financial statements. You can <strong>compare the outputs from this model<\/strong> to your previous assumed parameters to <strong>refine your values<\/strong>.&nbsp;<\/p>\n<\/p><\/div>\n<div class=\"video-content\">\n<div class=\"iframe-container\">\n   <iframe src=\"https:\/\/www.youtube.com\/embed\/k_HN0wOKDd0?modestbranding=1&amp;showinfo=0\" frameborder=\"0\" allowfullscreen=\"true\"> <\/iframe>\n  <\/div>\n<\/p><\/div>\n<div class=\"text-content\">\n<h4 style=\"text-align: center;\">Trend analysis&nbsp;<\/h4>\n<\/p><\/div>\n<div class=\"text-content\">\n<p>Trend analysis is a technique that attempts to <strong>predict the future based on the recently observed data<\/strong>. It is assumed that a similar trend from past data will continue into the future. For example, are theretrending fluctuations in your data you have not yet considered?<\/p>\n<p>You can use the trend analysis method to forecast the key parameters in your financial statements. You can <strong>compare the outputs from this model<\/strong> to your previous assumed parameters to <strong>refine your values<\/strong>.&nbsp;<\/p>\n<\/p><\/div>\n<div class=\"video-content\">\n<div class=\"iframe-container\">\n   <iframe src=\"https:\/\/www.youtube.com\/embed\/QnouKBcygsc?modestbranding=1&amp;showinfo=0\" frameborder=\"0\" allowfullscreen=\"true\"> <\/iframe>\n  <\/div>\n<\/p><\/div>\n<div class=\"text-content\">\n<h4 style=\"text-align: center;\">Simple moving average&nbsp;<\/h4>\n<\/p><\/div>\n<div class=\"text-content\">\n<p>This is an easy to understand technique used to<strong> extrapolate data from a dynamic set period<\/strong> of time. This method has been used in the previous steps to forecast some of your financial statement parameters. Some more information about this technique is provided in the video below.&nbsp;<\/p>\n<\/p><\/div>\n<div class=\"video-content\">\n<div class=\"iframe-container\">\n   <iframe src=\"https:\/\/www.youtube.com\/embed\/x4nO5yoarM0?modestbranding=1&amp;showinfo=0\" frameborder=\"0\" allowfullscreen=\"true\"> <\/iframe>\n  <\/div>\n<\/p><\/div>\n<\/section>\n<section id=\"perform-qualitative-sales-forecasting\">\n<h2>Perform qualitative sales forecasting<\/h2>\n<div class=\"text-content\">\n<p><strong>Qualitative sale forecast<\/strong>s are subjective forecasts that rely more on the opinion of market experts or surveys.&nbsp;<\/p>\n<p>These are the <strong>best ways to conduct your sales forecasts<\/strong>, especially if you have little historical data.&nbsp;<\/p>\n<\/p><\/div>\n<div class=\"text-content\">\n<h4 style=\"text-align: center;\">Delphi Method<\/h4>\n<\/p><\/div>\n<div class=\"text-content\">\n<p>This <strong>involved employing an unbiased team of market experts<\/strong> to conduct a sale forecast for the time period under consideration.&nbsp;<\/p>\n<\/p><\/div>\n<div class=\"video-content\">\n<div class=\"iframe-container\">\n   <iframe src=\"https:\/\/www.youtube.com\/embed\/GkazJtDO2Fg?modestbranding=1&amp;showinfo=0\" frameborder=\"0\" allowfullscreen=\"true\"> <\/iframe>\n  <\/div>\n<\/p><\/div>\n<div class=\"text-content\">\n<h4 style=\"text-align: center;\">Market Survey&nbsp;<\/h4>\n<\/p><\/div>\n<div class=\"text-content\">\n<p>You can <strong>ask corporation partners and customers to obtain their opinion<\/strong> in regards to your product or service and their expectations. This will give you a rough idea of what to expect in terms of the market growth in your industry.<\/p>\n<\/p><\/div>\n<div class=\"video-content\">\n<div class=\"iframe-container\">\n   <iframe src=\"https:\/\/www.youtube.com\/embed\/tjQFtSmVppY?modestbranding=1&amp;showinfo=0\" frameborder=\"0\" allowfullscreen=\"true\"> <\/iframe>\n  <\/div>\n<\/p><\/div>\n<div class=\"text-content\">\n<h4 style=\"text-align: center;\">Ask your sales team<\/h4>\n<\/p><\/div>\n<div class=\"text-content\">\n<p>Asking your sales team as a method works best if you have a large ticket value for a small number of customers. You can <strong>ask your sales team, who are in regular contact with your customers<\/strong>. Your sales team can give you the information in regards to the customer accounts, how frequently they purchase and their budget size.<\/p>\n<p>Consider the below questions to ask your sales team:<\/p>\n<\/p><\/div>\n<div class=\"multi-select-content form-field-content\">\n<ul class=\"items\">\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       1\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Walk me through our sales process.\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       2\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Who is our demographic?\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       3\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      What makes a good lead, 'good'?\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       4\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      Where do the majority of our leads come from?\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       5\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      How much do customers generally purchase?\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       6\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      What is the average budget of our customers?\n    <\/div>\n<\/li>\n<li class=\"item\">\n<div class=\"step-number-container\">\n<div class=\"step-number\">\n       7\n     <\/div>\n<\/p><\/div>\n<div class=\"step-checkbox-container\">\n<div class=\"step-checkbox\"><\/div>\n<\/p><\/div>\n<div class=\"item-name-static\">\n      What is the average frequency a given customer purchases our product or service?\n    <\/div>\n<\/li>\n<\/ul><\/div>\n<\/section>\n<section id=\"financial-plan-production\">\n<h2>Financial plan production:<\/h2>\n<div class=\"image-content\">\n<figure>\n   <a href=\"https:\/\/www.process.st\/templates\/wp-content\/uploads\/2024\/02\/gPNfgxd4do4Y2J0d4q5DFg.jpg\" alt=\"Financial plan production:\" target=\"_blank\" rel=\"noopener\"> <img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/www.process.st\/templates\/wp-content\/uploads\/2024\/02\/gPNfgxd4do4Y2J0d4q5DFg.jpg\"> <\/a><br \/>\n  <\/figure>\n<\/p><\/div>\n<\/section>\n<section id=\"get-ready-to-produce-your-financial-plan\">\n<h2>Get ready to produce your financial plan<\/h2>\n<div class=\"text-content\">\n<p>With the information obtained from this financial planning process, you have a good overview of key trends in your business and estimate future trends based on your assumptions made.&nbsp;<\/p>\n<p>This information is important for the production of a financial plan. The next stage in this process is to produce this financial plan.<\/p>\n<p>See <a href=\"https:\/\/www.process.st\/\" rel=\"nofollow noopener\" target=\"_blank\">Process Street<\/a>'s <a href=\"https:\/\/www.process.st\/templates\/financial-plan-template\/\" rel=\"nofollow noopener\" target=\"_blank\">Financial Plan Template<\/a>.<\/p>\n<p>Using <a href=\"https:\/\/www.process.st\/\" rel=\"nofollow noopener\" target=\"_blank\">Process Street<\/a>'s Financial Plan Template, you will <strong>test and review your forecasts<\/strong> and<strong> carry out key financial measures<\/strong> to eventually identify current and future warning signs and areas for improvements. Identification of such is key for you to<strong> implement required action to ensure business success.<\/strong><\/p>\n<\/p><\/div>\n<\/section>\n<section id=\"sources\">\n<h2>Sources:<\/h2>\n<div class=\"text-content\">\n<ul>\n<li><a href=\"https:\/\/onlinelibrary.wiley.com\/doi\/pdf\/10.1002\/9781119203124.app2\" rel=\"nofollow noopener\" target=\"_blank\">E. Denby Brandon, JR. and H. Oliver Welch<\/a>&nbsp;- <a href=\"https:\/\/onlinelibrary.wiley.com\/doi\/pdf\/10.1002\/9781119203124.app2\" rel=\"nofollow noopener\" target=\"_blank\">The History of Financial Planning Timeline<\/a><\/li>\n<li><a href=\"https:\/\/www.preferredcfo.com\/\" rel=\"nofollow noopener\" target=\"_blank\">Preferred CFO<\/a>&nbsp;- <a href=\"https:\/\/www.preferredcfo.com\/cash-flow-reason-small-businesses-fail\/\" rel=\"nofollow noopener\" target=\"_blank\">Cash Flow: The Reason 82% Of Small Businesses Fail<\/a><\/li>\n<li><a href=\"https:\/\/www.score.org\/\" rel=\"nofollow noopener\" target=\"_blank\">Score<\/a>&nbsp;- <a href=\"https:\/\/www.score.org\/\" rel=\"nofollow noopener\" target=\"_blank\">Jessie Hagen of U.S. Bank, cited on the SCORE\/Counselors to America\u2019s Small Business website<\/a><\/li>\n<li><a href=\"https:\/\/corporatefinanceinstitute.com\/\" rel=\"nofollow noopener\" target=\"_blank\">CFI<\/a>&nbsp;- <a href=\"https:\/\/corporatefinanceinstitute.com\/resources\/knowledge\/modeling\/what-is-financial-modeling\/\" rel=\"nofollow noopener\" target=\"_blank\">What Is Financial Modelling<\/a><\/li>\n<li><a href=\"http:\/\/www.businessdictionary.com\/\" rel=\"nofollow noopener\" target=\"_blank\">businessdictionary<\/a>&nbsp;- <a href=\"http:\/\/www.businessdictionary.com\/definition\/revenue.html\" rel=\"nofollow noopener\" target=\"_blank\">revenue<\/a><\/li>\n<li><a href=\"https:\/\/www.got-it.ai\/solutions\/excel-chat\" rel=\"nofollow noopener\" target=\"_blank\">excel-chat<\/a>&nbsp;- <a href=\"https:\/\/www.got-it.ai\/solutions\/excel-chat\/excel-tutorial\/average\/how-to-calculate-average-growth-rate\" rel=\"nofollow noopener\" target=\"_blank\">How To Calculate Average Growth Rate<\/a><\/li>\n<li><a href=\"https:\/\/www.youtube.com\/channel\/UCydJQVl-GRFlpm1eDkePEVw\" rel=\"nofollow noopener\" target=\"_blank\"> Video - Savoir-Faire Training<\/a> -&nbsp;<a href=\"https:\/\/www.youtube.com\/watch?v=EMhrRmse-r4\" rel=\"nofollow noopener\" target=\"_blank\">How to calculate a CAGR in Excel<\/a><\/li>\n<li><a href=\"https:\/\/www.investopedia.com\/uk\/\" rel=\"nofollow noopener\" target=\"_blank\">Investopedia<\/a>&nbsp;- <a href=\"https:\/\/www.investopedia.com\/terms\/c\/cogs.asp\" rel=\"nofollow noopener\" target=\"_blank\">Cost Of Goods Sold<\/a><\/li>\n<li><a href=\"https:\/\/www.investopedia.com\/uk\/\" rel=\"nofollow noopener\" target=\"_blank\">Investopedia<\/a>&nbsp;- <a href=\"https:\/\/www.investopedia.com\/terms\/g\/general-and-administrative-expenses.asp\" rel=\"nofollow noopener\" target=\"_blank\">General And Administrative Expenses<\/a><\/li>\n<li><a href=\"https:\/\/www.investopedia.com\/uk\/\" rel=\"nofollow noopener\" target=\"_blank\">Investopedia<\/a>&nbsp;- <a href=\"https:\/\/www.investopedia.com\/terms\/d\/depreciation.asp\" rel=\"nofollow noopener\" target=\"_blank\">Depreciation<\/a><\/li>\n<li><a href=\"https:\/\/ycharts.com\/\" rel=\"nofollow noopener\" target=\"_blank\">YCharts<\/a>&nbsp;- <a href=\"https:\/\/ycharts.com\/glossary\/terms\/net_ppe\" rel=\"nofollow noopener\" target=\"_blank\">Net PP &amp; E<\/a><\/li>\n<li><a href=\"https:\/\/www.investopedia.com\/uk\/\" rel=\"nofollow noopener\" target=\"_blank\">Investopedia<\/a>&nbsp;- <a href=\"https:\/\/www.investopedia.com\/ask\/answers\/06\/amortizationvsdepreciation.asp\" rel=\"nofollow noopener\" target=\"_blank\">Amortization vs. Depreciation: What's the Difference?<\/a><\/li>\n<li><a href=\"https:\/\/www.investopedia.com\/uk\/\" rel=\"nofollow noopener\" target=\"_blank\">Investopedia<\/a>&nbsp;- <a href=\"https:\/\/www.investopedia.com\/terms\/i\/interestexpense.asp\" rel=\"nofollow noopener\" target=\"_blank\">What is an Interest Expense<\/a><\/li>\n<li><a href=\"https:\/\/www.chron.com\/?_ga=2.81418519.1255313000.1558529041-1566773477.1556102362\" rel=\"nofollow noopener\" target=\"_blank\">Chron<\/a>&nbsp;- <a href=\"https:\/\/smallbusiness.chron.com\/mean-company-unusual-expenses-its-income-statement-21525.html\" rel=\"nofollow noopener\" target=\"_blank\">What Does It Mean if a Company Has Unusual Expenses in Its Income Statement?<\/a><\/li>\n<li><a href=\"https:\/\/www.investopedia.com\/uk\/\" rel=\"nofollow noopener\" target=\"_blank\">Investopedia<\/a>&nbsp;- <a href=\"https:\/\/www.investopedia.com\/terms\/t\/taxrate.asp\" rel=\"nofollow noopener\" target=\"_blank\">What Is a Tax Rate?<\/a><\/li>\n<li><a href=\"https:\/\/www.investopedia.com\/uk\/\" rel=\"nofollow noopener\" target=\"_blank\">Investopedia<\/a>&nbsp;- <a href=\"https:\/\/www.investopedia.com\/terms\/a\/accountsreceivable.asp\" rel=\"nofollow noopener\" target=\"_blank\">Accounts Receivable (AR)<\/a><\/li>\n<li><a href=\"https:\/\/www.investopedia.com\/uk\/\" rel=\"nofollow noopener\" target=\"_blank\">Investopedia<\/a>&nbsp;- <a href=\"https:\/\/www.investopedia.com\/terms\/c\/capitalexpenditure.asp\" rel=\"nofollow noopener\" target=\"_blank\">Capital Expenditure \u2013 CapEx Definition<\/a><\/li>\n<li><a href=\"https:\/\/www.investopedia.com\/uk\/\" rel=\"nofollow noopener\" target=\"_blank\">Investopedia<\/a>&nbsp;- <a href=\"https:\/\/www.investopedia.com\/terms\/o\/operatingincome.asp\" rel=\"nofollow noopener\" target=\"_blank\">Operating Income Definition<\/a><\/li>\n<li><a href=\"https:\/\/www.investopedia.com\/uk\/\" rel=\"nofollow noopener\" target=\"_blank\">Investopedia<\/a>&nbsp;- <a href=\"http:\/\/www.businessdictionary.com\/definition\/forward-transaction.html\" rel=\"nofollow noopener\" target=\"_blank\">forward transaction<\/a><\/li>\n<li><a href=\"https:\/\/www.youtube.com\/channel\/UC1S4Jeodbr5EbsCOIgBWJPQ\" rel=\"nofollow noopener\" target=\"_blank\">Video - Joshua Emmanuel<\/a>&nbsp;- <a href=\"https:\/\/www.youtube.com\/watch?v=k_HN0wOKDd0\" rel=\"nofollow noopener\" target=\"_blank\">Forecasting: Exponential Smoothing, MSE<\/a><\/li>\n<li><a href=\"https:\/\/www.youtube.com\/channel\/UCSMfS5F9Kx6gMSGZ3S1tPEA\" rel=\"nofollow noopener\" target=\"_blank\">Video - Weiqi Liu<\/a>&nbsp;- <a href=\"https:\/\/www.youtube.com\/watch?v=QnouKBcygsc\" rel=\"nofollow noopener\" target=\"_blank\">Trend Analysis with Microsoft Excel 2016<\/a><\/li>\n<li><a href=\"https:\/\/www.youtube.com\/channel\/UCQAvjhqp559qSQx2dcg9WVg\" rel=\"nofollow noopener\" target=\"_blank\">Video - Option Alpha<\/a>- <a href=\"https:\/\/www.youtube.com\/watch?v=x4nO5yoarM0\" rel=\"nofollow noopener\" target=\"_blank\">Simple Moving Average (SMA)<\/a><\/li>\n<li><a href=\"https:\/\/www.youtube.com\/channel\/UCZ1IbFCz_jiB7-RwOoTLCkg\" rel=\"nofollow noopener\" target=\"_blank\">Video - Supply Chain Academy<\/a>&nbsp;- <a href=\"https:\/\/www.youtube.com\/watch?v=GkazJtDO2Fg\" rel=\"nofollow noopener\" target=\"_blank\">Qualititive Forecasting Methods - Delphi Method<\/a><\/li>\n<li><a href=\"https:\/\/www.youtube.com\/channel\/UCSpVHeDGr9UbREhRca0qwsA\" rel=\"nofollow noopener\" target=\"_blank\">Video - Howcast<\/a>&nbsp;- <a href=\"https:\/\/www.youtube.com\/watch?v=tjQFtSmVppY\" rel=\"nofollow noopener\" target=\"_blank\">How to Conduct a Market Research Survey<\/a><\/li>\n<li><a href=\"https:\/\/www.forcemanager.com\/\" rel=\"nofollow noopener\" target=\"_blank\">Force Manager<\/a>&nbsp;- <a href=\"https:\/\/www.forcemanager.com\/blog\/sales-forecasting-process\/\" rel=\"nofollow noopener\" target=\"_blank\">Sales Forecasting Process: A Step by Step Guide<\/a><\/li>\n<li><a href=\"https:\/\/www.wallstreetmojo.com\/\" rel=\"nofollow noopener\" target=\"_blank\">Wall Street Mojo<\/a>&nbsp;- <a href=\"https:\/\/www.wallstreetmojo.com\/exponential-smoothing-in-excel\/\" rel=\"nofollow noopener\" target=\"_blank\">Exponential Smoothing in Excel<\/a><\/li>\n<li><a href=\"https:\/\/www.investopedia.com\/uk\/\" rel=\"nofollow noopener\" target=\"_blank\">Investopedia<\/a>&nbsp;- <a href=\"https:\/\/www.investopedia.com\/terms\/s\/sma.asp\" rel=\"nofollow noopener\" target=\"_blank\">Simple Moving Average - SMA Definition<\/a><\/li>\n<li><a href=\"https:\/\/www.brainyquote.com\/\" rel=\"nofollow noopener\" target=\"_blank\">brainyquote<\/a>&nbsp;- <a href=\"https:\/\/www.brainyquote.com\/quotes\/benjamin_franklin_138217\" rel=\"nofollow noopener\" target=\"_blank\">By failing To Prepare, You Are Preparing To Fail<\/a><\/li>\n<li><a href=\"https:\/\/pixabay.com\/photos\/office-pen-calculator-computation-1574717\/\" rel=\"nofollow noopener\" target=\"_blank\">Image<\/a>&nbsp;- <a href=\"https:\/\/pixabay.com\/users\/thedigitalway-3008341\/\" rel=\"nofollow noopener\" target=\"_blank\">TheDigitalWay<\/a>, re-sized<\/li>\n<li><a href=\"https:\/\/pixabay.com\/illustrations\/weigh-plus-minus-horizontal-2856321\/\" rel=\"nofollow noopener\" target=\"_blank\">Image<\/a>&nbsp;- <a href=\"https:\/\/pixabay.com\/users\/3dman_eu-1553824\/\" rel=\"nofollow noopener\" target=\"_blank\">3dman_eu<\/a>, re-sized<\/li>\n<li><a href=\"https:\/\/pixabay.com\/illustrations\/piggy-bank-money-finance-banking-2889042\/\" rel=\"nofollow noopener\" target=\"_blank\">Image<\/a>&nbsp;- <a href=\"https:\/\/pixabay.com\/users\/quincemedia-1031690\/\" rel=\"nofollow noopener\" target=\"_blank\">QuinceMedia<\/a>, re-sized<\/li>\n<li><a href=\"https:\/\/pixabay.com\/photos\/laptop-computer-technology-monitor-3190194\/\" rel=\"nofollow noopener\" target=\"_blank\">Image<\/a>&nbsp;- <a href=\"https:\/\/pixabay.com\/users\/rawpixel-4283981\/\" rel=\"nofollow noopener\" target=\"_blank\">rawpixel<\/a>, re-sized<\/li>\n<li><a href=\"https:\/\/pixabay.com\/illustrations\/balance-sheet-annual-report-241711\/\" rel=\"nofollow noopener\" target=\"_blank\">Image<\/a>&nbsp;- <a href=\"https:\/\/pixabay.com\/users\/kalhh-86169\/\" rel=\"nofollow noopener\" target=\"_blank\">kalhh<\/a>, re-sized<\/li>\n<li><a href=\"https:\/\/pixabay.com\/photos\/business-cash-coin-concept-credit-17610\/\" rel=\"nofollow noopener\" target=\"_blank\">Image<\/a>&nbsp;- <a href=\"https:\/\/pixabay.com\/users\/publicdomainpictures-14\/\" rel=\"nofollow noopener\" target=\"_blank\">PublicDomainPictures<\/a>, re-sized<\/li>\n<li><a href=\"https:\/\/pixabay.com\/photos\/entrepreneur-idea-competence-vision-1340649\/\" rel=\"nofollow noopener\" target=\"_blank\">Image<\/a>&nbsp;- <a href=\"https:\/\/pixabay.com\/users\/geralt-9301\/\" rel=\"nofollow noopener\" target=\"_blank\">geralt<\/a>, re-zied<\/li>\n<li><a href=\"https:\/\/pixabay.com\/photos\/receipt-money-messages-currency-1274307\/\" rel=\"nofollow noopener\" target=\"_blank\">Image<\/a>&nbsp;- <a href=\"https:\/\/pixabay.com\/users\/sabinevanerp-2145163\/\" rel=\"nofollow noopener\" target=\"_blank\">sabinevanerp<\/a>, re-sized<\/li>\n<li><a href=\"https:\/\/pixabay.com\/illustrations\/success-strategy-business-solution-2081168\/\" rel=\"nofollow noopener\" target=\"_blank\">Image<\/a>&nbsp;- <a href=\"https:\/\/pixabay.com\/users\/ar130405-423602\/\" rel=\"nofollow noopener\" target=\"_blank\">ar130405<\/a>, re-sized<\/li>\n<\/ul><\/div>\n<\/section>\n<section id=\"related-checklists\">\n<h2>Related Checklists:<\/h2>\n<div class=\"text-content\">\n<ul>\n<li><a href=\"https:\/\/www.process.st\/templates\/accounting-onboarding-procedures\/\" rel=\"nofollow\">Accounting Onboarding Procedures<\/a><\/li>\n<li><a href=\"https:\/\/www.process.st\/templates\/creating-an-invoice\/\" rel=\"nofollow\">Creating an Invoice<\/a><\/li>\n<li><a href=\"https:\/\/www.process.st\/templates\/bank-reconciliation-template\/\" rel=\"nofollow\">Bank Reconciliation Template<\/a><\/li>\n<li><a href=\"https:\/\/www.process.st\/templates\/expense-management-process\/\" rel=\"nofollow\">Expense Management Process<\/a><\/li>\n<li><a href=\"https:\/\/www.process.st\/templates\/accounts-receivable-process\/\" rel=\"nofollow\">Accounts Receivable Process<\/a><\/li>\n<li><a href=\"https:\/\/www.process.st\/templates\/accounts-payable-process\/\" rel=\"nofollow\">Accounts Payable Process<\/a><\/li>\n<li><a href=\"https:\/\/www.process.st\/templates\/income-profit-and-loss-statement-process\/\" rel=\"nofollow\">Income (Profit and Loss) Statement Process<\/a><\/li>\n<li><a href=\"https:\/\/www.process.st\/templates\/cash-flow-report\" rel=\"nofollow\">Cash Flow Report<\/a><\/li>\n<li><a href=\"https:\/\/www.process.st\/templates\/balance-sheet-statement-preparation-checklist\" rel=\"nofollow\">Balance Sheet Statement Preparation Checklist<\/a><\/li>\n<li><a href=\"https:\/\/www.process.st\/templates\/business-tax-preparation-checklist\" rel=\"nofollow\">Business Tax Preparation Checklist<\/a><\/li>\n<li><a href=\"https:\/\/www.process.st\/templates\/annual-financial-report-template\/\" rel=\"nofollow\">Annual Financial Report Template<\/a><\/li>\n<li><a href=\"https:\/\/www.process.st\/templates\/your-first-template-click-here-to-get-started-138\/\" rel=\"nofollow noopener\" target=\"_blank\">Client Services: Accounting Onboarding<\/a><\/li>\n<li><a href=\"https:\/\/www.process.st\/templates\/bank-reconciliation-template\/\" rel=\"nofollow noopener\" target=\"_blank\">Bank Reconciliation Template<\/a><\/li>\n<li><a href=\"https:\/\/www.process.st\/templates\/client-onboarding-for-financial-planners\/\" rel=\"nofollow noopener\" target=\"_blank\">Client Onboarding For Financial Planners<\/a><\/li>\n<li><a href=\"https:\/\/www.process.st\/templates\/creating-an-invoice\/\" rel=\"nofollow noopener\" target=\"_blank\">Creating An Invoice&nbsp;<\/a><\/li>\n<li><a href=\"https:\/\/www.process.st\/templates\/expense-management-process\/\" rel=\"nofollow noopener\" target=\"_blank\">Expense Management Process<\/a><\/li>\n<li><a href=\"https:\/\/www.process.st\/templates\/financial-management-for-new-projects\/\" rel=\"nofollow noopener\" target=\"_blank\">Financial Management For New Projects<\/a><\/li>\n<li><a href=\"https:\/\/www.process.st\/templates\/investor-pitch\/\" rel=\"nofollow noopener\" target=\"_blank\">Investor Pitch<\/a><\/li>\n<li><a href=\"https:\/\/www.process.st\/templates\/pci-compliance-checklist\/\" rel=\"nofollow noopener\" target=\"_blank\">PCI Compliance Checklist<\/a><\/li>\n<li><a href=\"https:\/\/www.process.st\/templates\/private-equity-due-dilligence-checklist\/\" rel=\"nofollow noopener\" target=\"_blank\">Private Equity Due Diligence Checklist<\/a><\/li>\n<li><a href=\"https:\/\/www.process.st\/templates\/procurement-guidelines-checklist\/\" rel=\"nofollow noopener\" target=\"_blank\">Procurement Guidelines and Checklist<\/a>&nbsp;<\/li>\n<li><a href=\"https:\/\/www.process.st\/templates\/purchase-of-a-business\/\" rel=\"nofollow noopener\" target=\"_blank\">Purchase Of A Busines<\/a>s&nbsp;<\/li>\n<li><a href=\"https:\/\/www.process.st\/templates\/purchase-order-workflow-template\/\" rel=\"nofollow noopener\" target=\"_blank\">Purchase Order Workflow Template&nbsp;<\/a><\/li>\n<li><a href=\"https:\/\/www.process.st\/templates\/startup-due-diligence-for-a-venture-capitalist\/\" rel=\"nofollow noopener\" target=\"_blank\">Startup Due Diligence For A Venture Capitalist<\/a>&nbsp;<\/li>\n<li><a href=\"https:\/\/www.process.st\/templates\/environmental-accounting-internal-audit\/\" rel=\"nofollow\">Environmental Accounting Internal Audit<\/a><\/li>\n<li><a href=\"https:\/\/www.process.st\/templates\/cash-management-process\/\" rel=\"nofollow\">Cash management process<\/a><\/li>\n<li><a href=\"https:\/\/www.process.st\/templates\/budget-process\/\" rel=\"nofollow\">Budget Process<\/a><\/li>\n<li><a href=\"https:\/\/www.process.st\/templates\/financial-plan-template\/\" rel=\"nofollow\">Financial Plan Template<\/a><\/li>\n<li><a href=\"https:\/\/www.process.st\/templates\/financial-audit-checklist\/\" rel=\"nofollow\">Financial Audit Checklist<\/a><\/li>\n<li><a href=\"https:\/\/www.process.st\/templates\/tax-preparation-checklist\/\" rel=\"nofollow\">Tax Preparation Checklist<\/a><a href=\"https:\/\/www.process.st\/templates\/annual-financial-report-template\/\" rel=\"nofollow\"><\/a><\/li>\n<\/ul><\/div>\n<\/section>\n","protected":false},"excerpt":{"rendered":"<p>Introduction: ''By failing to prepare, you are preparing to fail'' - Benjamin Franklin Process Street\u2019s Financial Planning Process is a guide to aid you through the process of producing a financial plan for your small business. This Financial Planning Process should be used in conjugation with&nbsp;Process Street\u2019s Financial Plan Template.&nbsp;The Financial Plan Template is for [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":17876,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"cover_icon_emoji":"","cover_icon_url":"","tasks_count":"78","template_description":"Process Street\u2019s Financial Planning Process is a guide to aid you through the process of producing a financial plan for your small business.","template_id":"onQTOxySv4kzXkowzhBG2g","task_0":"Introduction:","task_slug_0":"introduction","task_1":"Record checklist details","task_slug_1":"record-checklist-details","task_2":"State assumptions using your income statement:","task_slug_2":"state-assumptions-using-your-income-statement","task_3":"Create the required financial 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