Forecasting – balance sheet items
{"Image DocumentName": "Forecasting \u2013 balance sheet items", "Image ImageDescription": "Debtors: Debtors tend to increase as sales increase. Stock levels: More stock is required to meet increased demand. Cash: More cash is required to meet increased costs associated with the increase in sales. Creditors: More credit is required from suppliers as purchases increase in line with sales. Accrued expenses: More accrued expenses occur as a result of increased overheads. Bank overdraft: A bank overdraft is frequently used to bridge any financing gaps caused by increases in activity. Fixed assets: As the business expands new fixed assets are required. (Note that fixed assets will not increase as sales increase, but only as the business reaches capacity and requires expansion). Hence there is a long-term relationship between sales and the fixed assets requirement. Long-term finance: As fixed assets expand, one will also expect long-term finance in the form of equity and more likely long-term debt to increase.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}