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Posted: April 10th, 2022
income statement
Build a simple Income statement, Balance Sheet, and cash flow statement for the business you have been considering in earlier weeks. This is not an exercise in business planning, it’s an exercise in thinking about the various elements that make up these three key financial statements every entrepreneur is required to understand.
Instructions:
- Watch this 50 minute video lecture on financial statements Financial Planning/Budgeting – Entrepreneurship 101
- Take screen shots for your notes of each of the financial statements. So, when the presenter starts talking about the Income statement, stop the presentation, make a screenshot (PRTSCR on keyboard) and copy and paste it to your first tab in an Excel workbook.
- Do this same procedure for all three financial statements.
- Make sure there is a blank page or tab following each screenshot for you to build a similar financial statement for your business.
- Make notes as you go through this video on what you think might be reasonable numbers that you can insert for your business venture.
- Then on each blank sheet, build a pro-forma statement following the screenshot of the statement from the video. Fill in the numbers that make sense for you in the FIRST YEAR of your business and calculate all of the results.
- Complete this process for all three statements, save the workbook and submit it.
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