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CONTENTS
STAGE 1
g) Funding & Financials
Continued
Key Financial Statements for all Start Up businesses
A Balance Sheet* shows the statement of the assets, liabilities and equity capital of a
business at a particular point in time detailing the balance of income and expenditure
over the preceding period. A balance sheet captures 3 major components of your business
activities:
Assets: What the company owns such as buildings, cash, inventory.
Liabilities: The inancial obligations of the company such as loans, wages, taxes.
Equity: The capital received from investors in exchange for shares in the
company & retained earnings.
Assets Liabilities:
Current Assets: Current Liabilities:
Cash 18,500 Payments (owed by us) 48,500
Stock 41,500 Expenses Prepaid 1,500
Receivables (payment owing to us) 5,000
Long-term Assets: Long-term Liabilities
Buildings/Premises 150,000 Debt 95,000
Total Liabilities: 145,000
Equity
Common Shares 45,000
Retained Earnings 25,000
Total Assets 215,000 Total Liabilities & Equity 215,000
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