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Balance sheet projection
in case of new firm going to be registered under MSME what is the method to project the sale and profit to be shown in projected balance.
Replies (1)
To project sales and profits for a new MSME: (1) Estimate sales based on production capacity or market demand; (2) Calculate COGS and operating expenses as a percentage of revenue; (3) Account for non-cash expenses like depreciation and financial costs like interest; and (4) link these results to your balance sheet by updating cash, retained earnings, and asset values, ensuring the equation always balances.
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