Financial statements 3years.

A person running a retail store applied for loan account(cc loan) in a bank.if bank asked next 3years finicial statement(projected balance sheet)
Question:
how to prepare procedure projected balance sheet for cc loan purposes.
Replies (3)
Quick Summary
This discussion explains how to create a projected balance sheet for the next three years, essential for a CC loan application. It outlines a step-by-step process including projecting sales and expenses, calculating capital expenditure and depreciation, and preparing cash flow and profit & loss statements. The guide also touches upon adjusting stock, debtors, creditors, and cash balances based on fixed ratios.

You can prepare based on next 3 years projection of Revenue and expenses. Just follow the few steps. 1. Prepare sales projections,
2. Prepare Expense Projrction, 3. Prepare Capex and calculate Depreciation including existing capex, 4. Prepare cash flow projections based on opening, revenue, loans, expenses, closing balance, prepare PL add borrowing interests too, 5. Prepare balance sheet
Prepare projected, estimated, Provisional Accounts on the basis of thoroughly fixed ratios of sales, expenses increasing or decreasing during the year adjust stock valuation, debtors, creditors balances, adjust cash balances etc
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