The Balance Sheet of QuickBooks' Business Planning Starter Workbook - dummies

The Balance Sheet of QuickBooks’ Business Planning Starter Workbook

By Stephen L. Nelson

The Balance Sheet schedule has 19 rows with calculated data, but the first row contains only the text label Period. (As in the inputs area of the business planning starter workbook, the period identifier numbers the periods for which values are forecasted.)

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Cash & Equivalents

The Cash & Equivalents figures show the projected cash on hand at the end of each of the forecasting periods. The starting balance is the value you enter in the inputs area of the business planning starter workbook. The balance for the first and subsequent periods is pulled from the Cash Flow Statement schedule, where it’s calculated.

Accounts Receivable

The Accounts Receivable (A/R) figures show the net receivables held as of the end of each forecasting period. The starting balance is the value that you enter in the inputs planning area of the business starter worksheet. The balance for the first and subsequent periods is based on the Sales Revenue and the # Periods of Sales in A/R values that you enter in the inputs area of the business planning starter workbook. For example, the formula for the first period is

=C7*C31

The formula for the second period is

=D7*D31

and so on.

Inventory

The Inventory values show the dollar total of the inventory held at the end of each forecasting period. The starting balance is the value that you enter in the inputs area of the business planning starter workbook. The balance for the first and subsequent periods is the previous period balance plus any inventory purchases or production costs minus any cost of sales. For example, the formula for the first period is

=B45+C9 – C32

The formula for the second period is

=C45+D9 – D32

and so on.

Other Current Assets

The Other Current Assets figures show the dollar total of the other current assets held at the end of each forecasting period. The starting balance for Other Current Assets is the value that you enter in the inputs area of the business planning starter workbook. The balance for the first and subsequent periods is the previous balance plus the change in the balance. For example, the formula for the first period is

=B46+C11

The formula for the second period is

=C46+D11

and so on.

Total Current Assets

The Total Current Assets figures show the dollar total of the current assets at the end of each of the forecasting horizons. The balance at any time is the sum of Cash & Equivalents, Accounts Receivable, Inventory, and Other Current Assets. For example, the formula for the starting Total Current Assets balance is

=SUM(B43:B46)

The formula for the first period is

=SUM(C43:C46)

and so on.

Plant, Property, & Equipment

The Plant, Property, & Equipment figures show the original dollar cost of the plant, property, and equipment at the end of each forecasting horizon. The starting Plant, Property, & Equipment balance is the value that you enter in the inputs area of the business planning starter workbook. The balance for the first and subsequent periods is the previous balance plus any additions to the plant, property, and equipment accounts. For example, the formula for the first period is

=B48+C13

The formula for the second period is

=C48+D13

and so on.

Less: Accumulated Depreciation

The Accumulated Depreciation figures show the cumulative depreciation expenses charged through the current period for the plant, property, and equipment. The starting balance is the value that you enter in the inputs area of the business planning starter workbook. The balance for the first and subsequent periods is the previous balance minus the current period’s changes in accumulated depreciation. For example, the formula for the first period is

=B49 – C15

The formula for the second period is

=C49 – D15

and so on. Because the accumulated depreciation is shown as a negative amount, you subtract the positive number pulled from the forecasting inputs.

Net Plant, Property, & Equipment

The Net Plant, Property, & Equipment figures show the difference between Plant, Property, & Equipment and Accumulated Depreciation at the end of each of the forecasting horizons. For example, the formula for the starting balance is

=B48+B49

The formula for the first period is

=C48+C49

and so on. Because the Accumulated Depreciation balance is shown as a negative amount, you simply add these two amounts in the formula for the Net Plant, Property, & Equipment amount.

Other Noncurrent Assets

The Other Noncurrent Assets figures show the dollar total of any other noncurrent assets held at the end of each forecasting period. The starting balance is the value that you enter in the inputs area of the business planning starter workbook. The balance for the first and subsequent periods is the previous period balance plus the change in the account in the current period. For example, the formula for the first period is

=B51+C17

The formula for the second period is

=C51+D17

and so on.

Total Assets

The Total Assets figures show the dollar total of all the assets held at the end of the forecasting periods. The balance at any time is the sum of the following: Current Assets; Net Plant, Property, & Equipment; and Other Noncurrent Assets. For example, the formula for the starting balance is

=B47+B50+B51

The formula for the first period is

=C47+C50+C51

and so on.

Accounts Payable

The Accounts Payable figures show the debt that is related to the cost of sales outstanding at the end of each forecasting period. The starting balance is the value that you enter in the inputs area of the business planning starter workbook. The balance for the first and subsequent periods is Cost Of Sales for the period times # Periods Cost of Sales In A/P. For example, the formula for the first period is

=C19*C32

The formula for the second period is

=D19*D32

and so on.

Accrued Expenses

The Accrued Expenses figures show the debt that is related to the operating expenses outstanding at the end of each forecasting period. The starting balance is the value that you enter in the inputs area of the business planning starter workbook. The balance for the first and subsequent periods is the operating expenses times # Periods Operating Expenses in A/E. For example, the formula for the first period is

=C21*SUM(C33:C35)

The formula for the second period is

=D21*SUM(D33:D35)

and so on.

Other Current Liabilities

The Other Current Liabilities figures show the dollar total of other debts outstanding at the end of the forecasting periods that will be paid within the current year or business cycle. The starting balance is the value that you enter in the inputs area of the business planning starter workbook. The balance for the first and subsequent periods is the previous balance plus the change in the current period. For example, the formula for the first period is

=B59+C23

The formula for the second period is

=C59+D23

and so on.

Total Current Liabilities

The Total Current Liabilities figures show the dollar total of all the current liabilities at the end of each forecasting period. The balance at any time is the sum of Accounts Payable, Accrued Expenses, and Other Current Liabilities. For example, the formula for the starting balance is

=SUM(B57:B59)

The formula for the first period is

=SUM(C57:C59)

and so on.

Long-Term Liabilities

The Long-Term Liabilities figures show the dollar total of the long-term outstanding debt at the end of each forecasting period. The starting balance is the value that you enter in the inputs area of the business planning starter workbook. The balance for the first and subsequent periods is the previous balance plus any changes in the Long-Term Liabilities balance in the current period. For example, the formula for the first period is

=B62+C25

The formula for the second period is

=C62+D25

and so on.

Other Noncurrent Liabilities

The Other Noncurrent Liabilities figures show the dollar total of any other noncurrent outstanding debt at the end of each forecasting period. The starting balance is the value that you enter in the inputs area of the business planning starter workbook. The balance for the first and subsequent periods is the previous period balance plus the change in the current period. For example, the formula for the first period is

=B63+C27

The formula for the second period is

=C63+D27

and so on.

Total Noncurrent Liabilities

The Total Noncurrent Liabilities figures show the dollar totals of the long-term debt and the other noncurrent outstanding debt at the end of each forecasting period. The balance at any time is the sum of Long-Term Liabilities and Other Noncurrent Liabilities. For example, the formula for the starting balance is

=B62+B63

The formula for the first period is

=C62+C63

and so on.

Owner Equity

The Owner Equity figures show the dollar totals of the owner’s equity accounts at the end of each forecasting period. The starting balance is the value that you enter in the inputs area of the business planning starter workbook. The balance for the first and subsequent periods is the previous period balance plus Net Income After Taxes for the period, plus other adjustments, such as additional capital contributions and dividends. For example, the formula for the first period is

=B65+C29+C116

The formula for the second period is

=C65+D29+D116

and so on.

Total Liabilities and Owner Equity

The Total Liabilities and Owner Equity figures show the dollar totals of Current Liabilities, Noncurrent Liabilities, and Owner Equity at the end of each forecasting period. For example, the formula for the starting balance is

=B60+B64+B65

The formula for the first period is

=C60+C64+C65

and so on.

The Total Assets value should equal the Total Liabilities and Owner Equity value. If they differ, your model contains an error.