The document provides guidance for various financial tasks for starting and running a business, including listing suppliers and prices, developing a financial record keeping system, producing proforma income statements and balance sheets, preparing management ratios, establishing accounting and inventory records, developing budgets, managing cash transactions, and preparing summary financial statements. It also includes sample income statements, balance sheets, and budgets to demonstrate how to complete these tasks.

1. ENTREPRENEUR
DEVELOPMENT
Business star-up Simulation
FINANCIAL TEAM
SEGUNDO FABIAN TELLO PARRA
ESTHER RIVERA RODRÍGUEZ
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2. List suppliers, prices, and terms.
Suppliers are essential to almost every business.
Without raw materials to make what you sell or
manufacturers to provide what you resell, you
will have a tough time growing. There are also
many supplies and services your business
consumes as part of general overhead, from
paper clips to Internet access, light, water, etc.
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3. Develop financial record keeping system
Provide and maintain a safe workplace, plant
and equipment; provide safe systems of work;
provide the information, instruction, training
and supervision necessary to that employees
endanger neither themselves nor their
colleagues, provide and maintain a safe and
healthy environment.
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4. Produce proform income statement
An income statement is a key financial
document in business. It shows the
profitability of a company over a specific
period of time. The following guide shows
you how to prepare a simple multi-step
income statement. A multi-step income
statement separates operating income and
expenses from non-operating items.
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5. Produce proform balance sheet
A balance sheet is a picture of a company’s net worth at a
given time, such as the end of the year. It reflects the company’s
assets, liabilities and owner’s equity. It’s important to create and
review this financial statement to track the growth (or
contraction) of your business. As the term implies, a balance
sheet is a two-column statement of items that are the same:
both columns should balance each other out. The first column
is a list of assets. The second column is the sum of a list of
liabilities and the owner’s equity in the business. Expressed as
an equation, the balance sheet shows: Assets = Liabilities +
Owner’s Equity
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6. Prepare selected management ratios
Quick evaluations of the economic health of a company, from
balance sheet or income statement amounts.
Ratios can be expressed in three
different ways:
1. Ratio (e.g., current ratio of 2:1)
2. % (e.g., profit margin of 2%)
3. $ (e.g., EPS of $2.25)

7. Financial Ratio Analysis
Activity Ratios
Effectiveness
in putting its
asset
investment
to use.
Liquidity Ratios
Ability to
meet short-
term,
immediate
obligations.
Solvency Ratios
Ability to
satisfy debt
obligations.
Profitability
RatiosAbility to
manage
expenses to
produce
profits from
sales.

8. Establish accounting and inventory records
“Transforming stray
dogs into guide dogs”
Revenues 2500
Gross Sales 500
Cost of Goods Sold: 1000
Gross Profit 500
An adjusting entry is
recorded to bring an
asset or liability
account balance to
its proper amount.

9. Establish accounting and inventory records
“Transforming
stray dogs into
guide dogs”
Expenses
Sales and
Marketing
500 General Office 1,400
Research and
development
1000 Entertainment 30
Insurance 500 Licenses 50
Legal and
professional
Services
1.500
Salaries and
Benefits
670
Bookkeeping 300 Bank Fees 50
Rent 700 Interest 40
Utilities 300
Miscellaneous
Expenses
300
Repair s and
Maintenance
150 Total Expenses: 7,690 Net Income 8.190

10. Develop one-day budget for grand
opening
Expenditure Low High
Bar Equipment 500 600
Tables / Chairs 100 200
Signage 50 60
Security 100 150
Music 200 250
Liquor License 30 40
Insurance 60 80
Opening Inventory 100 150
Pre-opening hiring /training 200 250
Social Media 300 400
Opening Marketing 500 550
Initial Operating Capital 2140 2730
The manager prepares and
delivers the opening budget
even though there may be
unforeseen events that
generate changes in the
budget.

11. Manage cash transaction system
It is a payment system to settle financial
transactions through transfers of monetary
value.

12. summary financial statements

13. Step Two:
Prepare the Statement of Retained Earnings

14. Step Three: Prepare the Balance Sheet.

15. References:
http://www.ndwa.co.uk/media/guidance-for-handling-dogs.pdf
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