Let's have some tips for coming up with balance sheet assumptions. How to forecast balance sheet items. When we start with cash and cash equivalents, the best thing to do here is just leave it blank for now. You need the cash flow statement in order to fill this in, so just leave it until after that.

Next up, you've got things like operating current assets like inventory or receivables, and other long-term assets. For these, just forecast them using reasonable assumptions. If you think that they are linked to revenues, so for instance, higher revenue often leads to higher receivables or higher inventories, then that would be reasonable to link them together. For net PP&E, you'll have calculated that from your base calculation so you can just use that ending figure there. Figures such as long-term investments and goodwill we'd often flatline these. Long-term investments are a bit like cash that you just hang onto into the long term and goodwill, we're going to assume no acquisitions or divestitures, because they're non-recurring items. It's almost impossible for us to forecast those events happening. The last one, your other intangibles. Again, that will come from your backup calculation or your base analysis.