forecasted balance sheets

[timtheauthor]

Hi. I grasp where to find the data to fill in the assets and liabilities, but l cannot grasp:
a/ where the values for the last section 'equities' come from or mean
b/ why on earth the two lists should balance

Sorry to sound dumb. I'm pretty handy with cash flows and profit loss but this is my first stab at forecasted balance sheets.

Any help gratefully received
tim

 

[kirby]

Let's say you have the 12/31/12 balance sheet as a starting point and want to forecast the 1/31/13 balance sheet. You figure out the forecasted change to assets and liabilities and also the income for the month. The equity will be the 12 /31 /12 equity plus the month of january income, unless you plan to have other january equity transactions like declaring dividends or issuing stock.