1 / 8

Basic Financial Statements

Basic Financial Statements. Marketing I. Balance Sheet. Balance Sheet : reports company’s assets, liabilities, and owners equity Assets : anything of monetary value Liabilities : amounts owed by a business Equity : net worth. Assets, Liabilities, Equity. Assets :

ferrol
Télécharger la présentation

Basic Financial Statements

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Basic Financial Statements Marketing I

  2. Balance Sheet • Balance Sheet: reports company’s assets, liabilities, and owners equity • Assets: anything of monetary value • Liabilities: amounts owed by a business • Equity: net worth

  3. Assets, Liabilities, Equity • Assets: • Current assets are cash and anything of value that can be converted into cash in a year • Example: cash in the bank, accounts receivable (money owed to you by customers), inventory • Liabilities: • Current liabilities are the debts the business must pay during the upcoming business year • Example: accounts payable (money owed to suppliers), notes payable (money owed to bank), taxes payable, money owed to employees for salaries • Equity: • Assets – Liabilities = Net Worth (Equity)

  4. Income Statement • Income Statement: business's profit and loss over a given period of time • Include income from: • Sales revenue • Investments • Costs • Expenses

  5. Profit v. Loss • Profit & Loss Statement: reflect the ongoing operations of a firm • Profitable company generates more income than it pays out for goods and expenses • Company loss = costs and expenses exceed all revenue

  6. Company Net Worth • Net Worth: difference between assets and liabilities • Net Worth = assets – debts • Stockholder’ Equity is corporation net worth • Owner’s Equity is sole proprietorship net worth

  7. Small Business Administration • Small Business Administration: role to support business and encourage Free Enterprise System • Provides counseling and educational materials to prospective business owners

  8. Class Activity • What is the difference between an asset and a liability? • How can a company determine if it has made a profit or incurred a loss? • How does a company determine its net worth? • What information can be seen on an income statement? On a balance sheet? Why is this information important? • What might happen if an entrepreneur did not include financial documents in a business plan? • How are a business's one-time start-up costs different from its continuing costs? • How does the Small Business Administration (SBA) help businesses plan their financial needs?

More Related