*3.3. Forecast Balance, Forecast Income Statement, and Forecast Sources and Application of Funds in the Model*

The way in which the forecast balance, the forecast income statement and the forecast sources and application of funds are obtained is fundamental to understand what will occur, or may occur, in the future of the project [52]. These concepts will be briefly developed below, and a detailed description of these instruments can be found in [46].

## 3.3.1. Forecast Balance

The tool that allows the clarification of what is occurring in the project on the basis of the available accounting information is the forecast balance, which takes into account the situation of the project's assets, consisting of the project's debts, capital, rights and assets at a particular time. The asset of the forecast balance comprises the rights and the assets, while information regarding the financing attained is obtained from the net equity and the liability. The patrimonial masses of the forecast balance are the following: (i) the *current asset*, which includes those assets that are not initially permanent in the project owing to the fact that their remain period is under a year, and the *non-current asset*, which refers to all those assets that will remain in the project for over a year. The sum of these patrimonial masses, meanwhile, allows us to determine the *total asset* and, therefore, the *total liability*, whose components are the following: (i) the *net equity*, which comprises all the items that are not contemplated as obligations; (ii) the *non-current liability*, which considers all debts that remain in the project for more than a year, and (iii) the *current liability*, which comprises all debts whose remain period is under a year.
