Forecasting balance sheet items : short term investments and short term borrowings

maniea1990's picture
Rank: Chimp | 15

Hi there,
I have to project short-term investments and short-term borrowings for a manufacturing company. I have projected all other items based on relevant parameters. I am currently facing issue how to adjust the balance sheet based on the two accounts. Should I keep short-term investments as a balancing figure (what about the cash then??). And if so then how to forecast short-term borrowings?? I thought of making use of debt to equity ratio (deriving short-term borrowings from the % of debt to equity) keeping in view the past trend (and its decreasing) but even so, my valuation gets disturbed..... how to justify the optimal figure??

THANKS IN ADVANCE

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Mar 23, 2018
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