Simple Balance Sheet Forecast

This exercise teaches you to project a simplified balance sheet (assets/liabilities) using key working capital metrics Days Payable Outstanding (DPO), Days Sales Outstanding (DSO), and Days Inventory Outstanding (DIO).DSO is useful to predict accounts receivable when you want to measure the average time it takes for a company to collect payment after a sale has been made. DPO is useful to predict accounts payable when you want to measure the average time it takes a company to pay its bills due, indicating its payment policy. DIO is useful to predict inventory when you want to measure the average time it takes a company to hold its inventory before selling it.

Practice Simple Balance Sheet Forecast with interactive Excel modeling exercises in our Financial Statement Modeling module.

This hands-on modeling exercise helps you master Simple Balance Sheet Forecast through real-world Excel practice and financial modeling techniques.