A budgeted balance sheet is an essential financial tool that helps businesses forecast their expected financial position at a future date. It outlines projected assets, liabilities, and equity, enabling organizations to plan for resource allocation and assess financial health. Below are three diverse, practical examples of developing a budgeted balance sheet that illustrate how different businesses can approach this important task.
A start-up technology company is preparing for its first year of operations. They need to create a budgeted balance sheet to secure funding from investors.
To develop their budgeted balance sheet, the company estimates the following:
| Assets | Amount | Liabilities & Equity | Amount |
|---|---|---|---|
| Current Assets | Current Liabilities | ||
| Cash | \(50,000 | Accounts Payable | \)15,000 |
| Accounts Receivable | \(20,000 | Short-term Loans | \)10,000 |
| Inventory | $30,000 | Long-term Liabilities | |
| Total Current Assets | \(100,000 | Bank Loans | \)25,000 |
| Non-current Assets | Equity | ||
| Equipment | \(40,000 | Owner’s Capital | \)60,000 |
| Software Development Costs | $25,000 | ||
| Total Non-current Assets | \(65,000 | Total Liabilities & Equity | \)100,000 |
| Total Assets | $165,000 |
An established retail company aims to create a budgeted balance sheet for the upcoming fiscal year to evaluate expansion opportunities.
The company assesses its existing assets and liabilities, projecting changes based on expected sales growth and inventory turnover.
| Assets | Amount | Liabilities & Equity | Amount |
|---|---|---|---|
| Current Assets | Current Liabilities | ||
| Cash | \(60,000 | Accounts Payable | \)25,000 |
| Accounts Receivable | \(35,000 | Short-term Loans | \)15,000 |
| Inventory | $80,000 | Long-term Liabilities | |
| Total Current Assets | \(175,000 | Long-term Debt | \)50,000 |
| Non-current Assets | Equity | ||
| Property & Equipment | \(200,000 | Retained Earnings | \)150,000 |
| Total Non-current Assets | \(200,000 | Total Liabilities & Equity | \)175,000 |
| Total Assets | $375,000 |
A non-profit organization is developing a budgeted balance sheet to assess its financial position before launching a new community program.
The organization expects donations and grants to increase and needs to plan for potential expenses.
| Assets | Amount | Liabilities & Equity | Amount |
|---|---|---|---|
| Current Assets | Current Liabilities | ||
| Cash | \(30,000 | Accounts Payable | \)5,000 |
| Accounts Receivable | \(15,000 | Short-term Grants Payable | \)10,000 |
| Total Current Assets | $45,000 | Long-term Liabilities | |
| Non-current Assets | Equity | ||
| Equipment | \(10,000 | Unrestricted Funds | \)20,000 |
| Total Non-current Assets | \(10,000 | Total Liabilities & Equity | \)45,000 |
| Total Assets | $55,000 |
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