The three key financial statements - the balance sheet, income statement, and statement of cash flows - provide valuable information to business managers and investors about the overall financial health of a company. The balance sheet provides a snapshot of a company's assets, liabilities, and equity. The income statement shows profit and loss. And the statement of cash flows explains changes in cash flow from operations, investing, and financing activities.

1. Team 3
Junior Achievement

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.