See below image for the Projected balance sheet example diagram. What are projected balance sheets? Projected balance sheets, or pro forma balance sheets, are the statements that show estimated changes to a company’s financial status, including investments, other assets, liabilities and financing for equity.
The Balance Sheet includes spending and income that isn’t in the Profit and Loss. For example, the money you spend to repay a loan or buy new assets doesn’t show up in the Profit and Loss. And the money you take in as a new loan or a new investment doesn’t show up in the Profit and Loss either.
We start the balance sheet forecast by forecasting working capital items. (For a complete guide to working capital, read our “Working Capital 101” article.) Broadly speaking, working capital items are driven by the company’s revenue and operating forecasts. Conceptually, working capital is a measure of a company’s short-term financial health.