Forecasting AR and AP for monthly statements
So to forecast balance sheet items you would calculate the DSO and AP cycle and then adjust/keep it the same in the future. The formula that I am familiar with is AR/Revenue * 365/360. But that is for annual forecasting, for the monthly forecast (or quarterly) do you just multiply by 30 (or 90)?
Hi Analyst 1 in Other, check out these threads:
More suggestions...
Hope that helps.
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