Projections
This query is : Resolved
06 May 2010
I want to prepare projections for next 3 years. What are the important steps to be considered while making projections. How the P&L & Balance sheet is tallied?
06 May 2010
Note some of th efollowing points while providing projections >
- Determine sales on the basis of the trends from the previous years.
- Estimate debtors on the basis of the experience of the debt collection and increase in credit sales.
- Estimate the increase or decrease in creditors on the basis of the credit period u can avail from the suppliers and level of purchases made.
- Stock should be estimated on the basis of the sales, inventory turnover, storage capacity and working capital investment.
- Estimate expenses based on the past experiences, any special expense to be incurred, commitments made etc.
- Estimate depreciation on the basis of past %. Also consider any additional asset planned to be purchased in future.
- Consider planning for any additional loan likely to be raised.
- Deduct the estimated EMIs , if any paying for any existing loans.
- Change fixed assets on the estimate of new purchase or sale of old asset.
- Consider capital introduction if likely to be taken in future.
- Profit % should reflect some what trend of the past years unless there are specific changes.
- Balance or any difference in BS, can be adjusted in cash and bank balance.
- Determine sales on the basis of the trends from the previous years.
- Estimate debtors on the basis of the experience of the debt collection and increase in credit sales.
- Estimate the increase or decrease in creditors on the basis of the credit period u can avail from the suppliers and level of purchases made.
- Stock should be estimated on the basis of the sales, inventory turnover, storage capacity and working capital investment.
- Estimate expenses based on the past experiences, any special expense to be incurred, commitments made etc.
- Estimate depreciation on the basis of past %. Also consider any additional asset planned to be purchased in future.
- Consider planning for any additional loan likely to be raised.
- Deduct the estimated EMIs , if any paying for any existing loans.
- Change fixed assets on the estimate of new purchase or sale of old asset.
- Consider capital introduction if likely to be taken in future.
- Profit % should reflect some what trend of the past years unless there are specific changes.
- Balance or any difference in BS, can be adjusted in cash and bank balance.
06 May 2010
WELL DONE RAHUL JI......
VERY NICE AND TO THE POINT REPLY....
VERY NICE AND TO THE POINT REPLY....
Message likes :
1 times
06 May 2010
good reply
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Opting our of sec 44AD
- Value of property in capital gain
- LC charges in relation to Asset purchased should be Capitalised ?
- Multiple trade mark
- Regarding appeal to GSTAT
- Regarding TDS Applicability For Director Remuneration
- Copyright software
- Transporter Declaration form
- SALE OF MOTOR CAR BY REGISTERED INDIVIDUAL
- Taxation on Swing Trading Income (No Other Income)
- GST Treatment of Insurance Commission for Existing GST Holder
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
