Financial Modeling Forecasted Financial Statement Term Paper

Total Length: 715 words ( 2 double-spaced pages)

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The Income tax of the company is 35% which is as per the Tax Jurisdiction of the United States (U.S.). The rate of tax is stable for the upcoming years which bought the Net Income after Tax (NIAT) at a position of $, 1688, $, 2452, $3,461, $4,810, $6,643 and $9,169 for the years 2011, 2012, 2013, 2014, 2015 and 2016 respectively. Let's now take into provision the forecasted figures of the balance sheet.

Forecasted Balance Sheet/Cash Flow

Balance sheet highlights the actual financial position of the company (Cinnamon & Larsen, 2006). Basically balance sheet is the name of balancing the total assets with the figures of shareholder's equity and liabilities. The same has been applied in this assignment. In the assets category, there are two things current assets and non-current assets. The current assets of Southwest Airline made up from Cash, Account Receivable, Inventory and other current assets.

The current assets of the company will be increased with substantial percentages from the period 2011 to 2016. The forecasted current assets of Southwest Airlines are $4,691, $6,376, $8,749, $12,095, $16,796 and $23,388.

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The property plant and Equipment (PPE) is the most important factor comes under the umbrella of Non-Current Asset. According to the forecasted figure of Southwest Airline will decreased year on year (YOY) with a fixed percentage of 2.1%, while the other long-term assets will increase by 10% each year from 2011 to 2016. The total forecasted assets of the company are $15,720, $17,245, $19,481, $22,700, $27,285 and $33,775. The long-term debt and deferred tax will be increasing by 4% and 3% respectively for the next six years. According to the forecasted figure, the retained earning of Southwest Airline will increase by 3% each year for the next six years. Adding the total liabilities and shareholder's equity equated the balance sheet by showing the same figure of total liabilities and equities like the total assets of the company.

The cash flow of the company made up from three things, Cash Flow from Operating Activities (COA), Cash Flow from Investing Activities (CIA).....

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"Financial Modeling Forecasted Financial Statement" (2011, May 18) Retrieved May 16, 2025, from
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"Financial Modeling Forecasted Financial Statement" 18 May 2011. Web.16 May. 2025. <
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Latest Chicago Format (16th edition)

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"Financial Modeling Forecasted Financial Statement", 18 May 2011, Accessed.16 May. 2025,
https://www.aceyourpaper.com/essays/financial-modeling-forecasted-financial-44773