Example of Inventory Levels and Forecasting

Inventory note to the financial statements

This note generally shows the beginning and ending dollars amounts and/or unit amount of inventory for each forecasted year. Recall, the dollar amounts of inventory is shown on a company's forecasted balance sheet. Also, recall, the ending inventory in any given business year becomes the beginning inventory at the start of the following business year. An example of an inventory note to the financial statements is as follows;

The following inventory in units and in dollars have been forecasted for THE BIG COMPANY.  These values apply to the company's 200X and 200Y balance sheets ( ending December 31).

200X 200Y
Forecasted beginning inventory in units each year 0 units 3000 units
Forecasted ending inventory in units each year 3000 units 3523 units
Forecasted beginning inventory (in dollars) $ 0.00 $15,000
Forecasted ending inventory (in dollars) $15,000 $17,615


Categories: Financial