Business
Plans - Appendix II - Contd.
BALANCE SHEET
COMPANY NAME
As of ____________________________,
19____
Assets
Current assets
 |
Cash
$_______
|
|
Petty cash
$_______
|
|
Accounts receivable
$_______
|
|
Inventory
$_______
|
|
Short-term investment
$_______
|
|
Prepaid expenses
$_______
|
|
Long-term investment
$_______
|
Fixed assets
|
Land
$_______
|
|
Buildings
$_______
|
|
Improvements
$_______
|
|
Equipment
$_______
|
|
Furniture
$_______
|
|
Automobile/vehicles
$_______
|
Other assets
|
1. $_______
|
2. $_______
|
3. $_______
|
4. $_______
|
Total assets
$______
| | | | |
Liabilities
Current Liabilities
|
Accounts payable
$______
|
|
Notes payable
$______
|
|
Interest payable
$______
|
Taxes payable
|
Federal income tax
$______
|
|
State income tax
$______
|
|
Self-employment tax
$______
|
|
Sales tax (SBE)
$______
|
|
Property tax
$______
|
|
Payroll accrual
$______
|
Long-term liabilities
|
Notes payable
$______
|
|
Total liabilities
$______
|
|
Net worth (owner equity)
$______
|
Proprietorship or
Partnership
|
(name's) equity
$_____
|
|
(name's) equity
$_____
|
or
Corporation
|
Capital stock
$_____
|
|
Surplus paid in
$_____
|
Retained earnings
$_____
Total net worth
$_____
| Total liabilities and total net worth
$_____
|
(Total assets will always equal total
liabilities and total net worth)
________________________________________________________________
INSTRUCTIONS FOR BALANCE SHEET
Figures used to compile the balance
sheet are taken from the previous and current balance sheet as
well as the current income statement. The income statement is
usually attached to the balance sheet. The following text covers
the essential elements of the balance sheet.
At the top of the page fill in the legal
name of the business, the type of statement and the day, month
and year.
Assets
List anything of value that is owned
or legally due the business. Total assets include all net values.
These are the amounts derived when you subtract depreciation
and amortization from the original costs of acquiring the assets.
Current Assets
|
Cash-List cash and resources that
can be converted into cash within 12 months of the date of the
balance sheet (or during one established cycle of operation).
Include money on hand and demand deposits in the bank, e.g., checking
accounts and regular savings accounts.
|
Petty cash-If your business has
a fund for small miscellaneous expenditures, include the total
here.
|
Accounts receivable-The amounts
due from customers in payment for merchandise or services.
|
Inventory-Includes raw materials
on hand, work in progress and all finished goods, either manufactured
or purchased for resale.
|
Short-term investments-Also called
temporary investments or marketable securities, these include
interest- or dividend-yielding holdings expected to be converted
into cash within a year. List stocks and bonds, certificates
of deposit and time-deposit savings accounts at either their cost
or market value, whichever is less.
|
Prepaid expenses-Goods, benefits
or services a business buys or rents in advance. Examples are
office supplies, insurance protection and floor space.
| | | | | |
Long-term Investments
Also called long-term assets, these
are holdings the business intends to keep for at least a year
and that typically yield interest or dividends. Included are
stocks, bonds and savings accounts earmarked for special purposes.
Fixed Assets
Also called plant and equipment. Includes
all resources a business owns or acquires for use in operations
and not intended for resale. Fixed assets may be leased. Depending
on the leasing arrangements, both the value and the liability
of the leased property may need to be listed on the balance sheet.
|
Land-List original purchase price
without allowances for market value.
|
Buildings
|
Improvements
|
Equipment
|
Furniture
|
Automobile/vehicles
| | | | | |
Liabilities
Current Liabilities
List all debts, monetary obligations
and claims payable within 12 months or within one cycle of operation.
Typically they include the following:
|
Accounts payable-Amounts owed to
suppliers for goods and services purchased in connection with
business operations.
|
Notes payable-The balance of principal
due to pay off short-term debt for borrowed funds. Also includes
the current amount due of total balance on notes whose terms exceed
12 months.
|
Interest payable-Any accrued fees
due for use of both short- and long-term borrowed capital and
credit extended to the business.
|
Taxes payable-Amounts estimated
by an accountant to have been incurred during the accounting period.
|
Payroll accrual-Salaries and wages
currently owed.
| | | | |
Long-term Liabilities
Notes payable-List notes, contract payments
or mortgage payments due over a period exceeding 12 months or
one cycle of operation. They are listed by outstanding balance
less the current position due.
Net worth
Also called owner's equity, net worth
is the claim of the owner(s) on the assets of the business. In
a proprietorship or partnership, equity is each owner's original
investment plus any earnings after withdrawals.
Total Liabilities and Net Worth
The sum of these two amounts must always
match that for total assets.
______________________________________________________________
Next Topic: MONTHLY CASH FLOW PROJECTION
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