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Creating Income Statements and Balance Sheets for Financial Forecasting
Learn about the components of income statements and balance sheets, and how they can be used to improve the financial well-being of your company.Preview the first lesson free — get full access to all 6 lessons.
Beginner Provider : John E. Harvey Ph.D 6 Lessons · 17m in Arabic, German, English, Spanish, French, Portuguese, Chinese
Course Description
A company’s balance sheet is a historical document for a particular accounting period. It is used in combination with other financial documents, such as the income statement and the cash flow statement, to evaluate a company’s financial health, or to predict its future successes. A company can use the balance sheet in tandem with other financial components, such as payments, inventory, and income statements, to assess performance internally, and to assess the company’s ability to service debt or other financial commitments externally. In this module, we’ll also detail how you and your organization can go about creating your own income statements and balance sheets.
In this course, Creating Income Statements and Balance Sheets for Financial Forecasting, we’ll look in detail at the components of forecasted income statements and balance sheets, and explore how you can analyze operating expenses in a way that supports your organization’s bottom line. We’ll also discuss how components such as administrative costs, cash receipts, payments, and inventory will affect your company’s financial forecasting.
What You'll Learn
- Identify the key components of forecasted income statements and balance sheets
- Create your own income statements and balance sheets for financial forecasting
- Analyze operating expenses, including selling and administrative costs, to support your organization's bottom line
- Develop pro forma income statements for financial forecasting
- Explain how cash receipts, payments, budgets, and inventory impact financial forecasting
- Use the balance sheet alongside income and cash flow statements to evaluate a company's financial health
Key Takeaways
- A company's balance sheet is a historical document for a particular accounting period.
- The balance sheet is used together with other financial documents, such as the income statement and the cash flow statement, to evaluate a company's financial health or predict its future success.
- A company can use the balance sheet alongside components such as payments, inventory, and income statements to assess performance internally and its ability to service debt or other financial commitments externally.
- Components such as administrative costs, cash receipts, payments, and inventory affect a company's financial forecasting.
- Analyzing operating expenses can be done in a way that supports an organization's bottom line.
Frequently Asked Questions
What does this course cover?
The course looks in detail at the components of forecasted income statements and balance sheets, explores how to analyze operating expenses to support your organization's bottom line, and discusses how administrative costs, cash receipts, payments, and inventory affect financial forecasting. It also details how you and your organization can create your own income statements and balance sheets.
What will I be able to do after taking this course?
You will be able to identify the key components of income statements and balance sheets, explain how to create income statements and balance sheets, and understand how cash receipts, payments, budgets, and inventory impact financial forecasting.
What topics are included in the lessons?
Lessons cover an Introduction; Selling and Administrative Costs; Developing Pro Forma Income Statements for Financial Forecasting; Cash Receipts, Payments, Budgets, and Inventory; Creating the Balance Sheet and Financial Forecasting; and a Test Your Knowledge section.
How is the balance sheet used in financial forecasting?
The balance sheet is a historical document for a particular accounting period that is used in combination with other financial documents, such as the income statement and the cash flow statement, to evaluate a company's financial health or to predict its future success. It can also be used with payments, inventory, and income statements to assess performance internally and the company's ability to service debt or other financial commitments externally.
