Chapter 3 Financial Statements Entrepreneurial Finance 5 th

$$ $$ $$ $$ $$ Chapter 3 Financial Statements Entrepreneurial Finance, 5 th Edition Adelman and Marks 1 -1 Pearson Higher Education © 2010 by Pearson Education, Inc. Upper Saddle River, NJ 07458

$$ $$ $$ $$ $$ Statements § Personal Financial Statements § Sole proprietors and partners § Corporations § Audited statements › Why? › How? – Independent auditors Entrepreneurial Finance, 5 th Edition Adelman and Marks 1 -2 Pearson Higher Education © 2010 by Pearson Education, Inc. Upper Saddle River, NJ 07458

$$ $$ $$ $$ $$ Financial Statement (Personal Form) § Single bank loan application form which incorporates two individual financial forms: › Statement of financial position – Cash equivalents – Invested assets – Use assets – Liabilities – Net worth › Personal cash flow statement – Income – Fixed expenses – Variable expenses § http: //www. youtube. com/watch? feature=player_detailpage&v=T_8 t 2 y. Tr. Cms Entrepreneurial Finance, 5 th Edition Adelman and Marks 1 -3 Pearson Higher Education © 2010 by Pearson Education, Inc. Upper Saddle River, NJ 07458

$$ $$ $$ $$ $$ Entrepreneurial Finance, 5 th Edition Adelman and Marks Cash Mgt and Budgeting 1 -4 Pearson Higher Education © 2010 by Pearson Education, Inc. Upper Saddle River, NJ 07458

$$ $$ $$ $$ $$ Entrepreneurial Finance, 5 th Edition Adelman and Marks Personal net worth 1 -5 Pearson Higher Education © 2010 by Pearson Education, Inc. Upper Saddle River, NJ 07458

$$ $$ $$ $$ $$ Personal Income Statement (Cash Flow Statement) § Income—Include all sources › Wages, tips, overtime › Interest on savings, stock dividends, etc. § Fixed expenses › Contractual, must be paid › Rent, insurance, utilities, car payments, etc. § Variable expenses › You control level of expenses (food, clothing) Entrepreneurial Finance, 5 th Edition Adelman and Marks 1 -6 Pearson Higher Education © 2010 by Pearson Education, Inc. Upper Saddle River, NJ 07458

$$ $$ $$ $$ $$ Entrepreneurial Finance, 5 th Edition Adelman and Marks 1 -7 Pearson Higher Education © 2010 by Pearson Education, Inc. Upper Saddle River, NJ 07458