Create Your Proforma Template for Sales Effortlessly

Proforma template for Sales

all right now I'm gonna do a proform of balance sheets awesome we made that Proform an income statement right and now we're gonna use that same person a sales message method so I've added a pro forma on the balance sheet side now some things are naturally going to track sales and things like accounts receivable gear materials and supplies payables down here those are the sorts of things that tend to work well with percent of sales method a lot of other things I'm about to eat are not I just sales some things can be so cash can track sales very well year-over-year property can track sales they don't have to so what I'm gonna do is I'm going to do the percent of sales for the things I think should be relatively close percent of sales and then I'm gonna look at some of the others and see if I see anything else I think is tracking sales well for you and he in particular so I'll start here with accounts receivables and I'm gonna do a verage so again we're gonna do average percentage of sales and so what I'm gonna want is all these right here and I'm gonna do this in a particular way you can come up with your own way if you want I just think this is up being cleaner so I'm just gonna do that times income statement and here's our total sales that we're trying to tie it to lock that in particular and then I'm gonna go back into my average here and I'm gonna divide each of these by the relative sales for that year so this is gonna mean this one walk then D this half the main reason under this is if you jump back and forth between sheets all of your balance sheets are gonna look so like this g5 will become quote balance sheet quote exclamations 85 and stuff so it's not that it matters I guess it just makes my equation shorter in which I prefer but anyway once I do that I should go inter it's gonna give me an estimate probably don't need 400 decimal places I'm gonna match the formatting the others really I want I'm going to do it like that then you'll see the estimate is fairly similar to last year's level again it may not be perfect but it's not a bad assumption for se rule materials payables are the three I would say here we go for the three that they can do this and probably come up with a fairly good estimates the rest of them might and so I'm gonna create something similar common size balance sheet here only I'm gonna common size it rather than two assets like your to do the column size top sheet before I'm gonna create a copy real quick then I'm gonna end up the leading so don't worry about what it's called or anything and then I'm gonna take this and make it balance sheet here over become state revenues for the year I just did I'm gonna walk just the 6 like we did for we've done before common sizes just like it concise but instead of becomes like balance sheet everything divided by assets about year it's divided by revenues for that year and then should be able just drag that over and then drag it down and we can kind of see what cash is kind of hung out six ish percent of revenue so it has track revenues fairly well so I could mark that one as possible where D did this one as percent of sales as well as person to sales this does not track based on this right but a zero there was one it doesn't really look like it and you're just looking for things that stay flat about the same year year again total current assets as summed up honors who don't need to worry about it um so like investments was six and the Dow little went up some that went up again went up again but it's up as a percent of sales so it's not staying flat as a person to sales I probably wouldn't do that Net properties increased a lot relative to sales levels hasn't stayed flat not other assets definitely not debt do one year even a bit track that I probably wouldn't use because that's a sort of thing that shouldn't track sales debt doesn't look flat this doesn't look flat um maybe commitments and there are other long-term liabilities I'd have to know what that was but it has gone up some relatively speaking so you know again you're looking for things were the percentages of stayed almost exactly the same across the years I would not do it with common stock or any of this anyway because it shouldn't track sales so really the only other thing you try use percent of sales on for this particular company is once again this is all feel this is nothing scientific really going into them now looking and see so I'm gonna go back my balance sheet and I'm gonna copy my person to sales and put it here as well for cash and cash equivalents and then everything else equals previous year that and again what you would do is and go find more information on these other things and how how we should project it will hopefully have time to talk more about this in class so just carry over some values and again it also has to do with especially the assets are the liabilities and common share or like we did with the bookwork part of that has to do with changes in assets being projected and then how are we gonna finance that but by looking at the DFM and balancing out things like that so so then my pro forma will not necessarily be balanced right so we're gonna end up down here with assets assets 57 9 91 and then liabilities and shareholder equity slightly below that and then I said you'd have to make decisions of refunding now short term debt or equity or whatnot so anyway that's the idea behind a pro forma balance sheet pretty straightforward and that's the last part of this chapter