2. Balance Income
Sheet Statement
Statement of
Cash Flows
3. These statements are the MOST important
part of the business plan. They provide valuable
information that is typically used by business
managers and investors. The entrepreneur
does not need to personally develop financial
statements. This is typically done by investors
and managers and these sheets tell the overall
financial health of the business.
4. Balance Sheet is a financial snap shot of a
company’s assets, liabilities, and stockholder’s
equities.
Income Statement Profit and Loss
Statement of Cash Flows uses information the two
other financial statements, the balance sheet (B/S) and the
income statement (I/S), to develop a statement that explains
changes in cash flows resulting from
operations, investing, and financing activities
5. Includes
Cost of Goods Sold
Gross
Operating
Net profits
All should be in percent total of 100%
6. Assets
▪ current
▪ long term
▪ tangible and intangible
Liabilities
current and long-term
Equity
▪ stock-Common, preferred, etc
▪ retained earnings
Are on the balance sheet to determine a company’s
creditworthiness and solvency position
7. Uses information from the two other financial
statements, the balance sheet (B/S) and she
Income Statement (I/S), to develop a
statement that explains changes in cash flows
resulting from operations, investing, and
financing activities.
8. Rogers, S. (2009). Entrepreneurial
Finance . In S. Rogers, Entrepreneuial
Finance (pp. 81-101). New York: McGraw
Hill.
