Balance sheet sample of merchandising business plan

Strategic Analysis with current research! The Film Production Company, Inc. The Company was founded in by John Doe. The Company will earn substantial income from the distribution and licensure fees from the initial theatrical release of productions coupled with ongoing royalties from DVD, Blu-Ray, and merchandising sales.

Balance sheet sample of merchandising business plan

The way to show off the success of your company is a balance sheet. It is a cumulative record that reflects the result of all recorded accounting transactions since your enterprise was formed. With a properly prepared balance sheet, you can look at a balance sheet at the end of each accounting period and know if your business has more or less value, if your debts are higher or lower, and if your working capital is higher or lower.

By analyzing your balance sheet, investors, creditors and others can assess your ability to meet short-term obligations and solvency, as well as your ability to pay all current and long-term debts as they come due. The balance sheet also shows the composition of assets and liabilities, the relative proportions of debt and equity financing and the amount of earnings that you have had to retain.

Who Wants to See Your Balance Sheet Many people and organizations are interested in the financial affairs of your company, whether you want them to be or not. However, your creditors also want assurance that you will be able to pay them when they ask.

Prospective investors are looking for a solid company to bet their money on, and they want financial information to help them make a sound decision.

Your management group also requires detailed financial data and the labor unions if applicable will want to know your employees are getting a fair share of your business earnings. Common Classifications On the balance sheet you list your assets and equities under classifications according to their general characteristics.

It is a relatively simple matter to make a comparison of one classification with another or to make comparisons within a classification because similar assets or similar equities are listed together.

Some of the most commonly used classifications are: Current Assets Current assets include cash and other assets that in the normal course of events are converted into cash within the operating cycle.

For example, a manufacturing enterprise will use cash to acquire inventories of materials. These inventories of materials are converted into finished products and then sold to customers. Cash is collected from the customers.

This circle from cash back to cash is called an operating cycle. In a merchandising business one part of the cycle is eliminated. Materials are not purchased for conversion into finished products.

Instead, the finished products are purchased and are sold directly to the customers. Several operating cycles may be completed in a year, or it may take more than a year to complete one operating cycle.

The time required to complete an operating cycle depends upon the nature of the business. It is conceivable that almost all of the assets that are used to conduct your business, such as buildings, machinery, and equipment, can be converted into cash within the time required to complete an operating cycle.

However, your current assets are only those that will be converted into cash within the normal course of your business. The other assets are only held because they provide useful services and are excluded from the current asset classification.

If you happen to hold these assets in the regular course of business, you can include them in the inventory under the classification of current assets. Current assets are usually listed in the order of their liquidity and frequently consist of cash, temporary investments, accounts receivable, inventories and prepaid expenses.

It is always listed first on a balance sheet. Cash held for some designated purpose, such as the cash held in a fund for eventual retirement of a bond issue, is excluded from current assets. Marketable Securities These investments are temporary and are made from excess funds that you do not immediately need to conduct operations.

Until you need these funds, they are invested to earn a return.

balance sheet sample of merchandising business plan

You should make these investments in securities that can be converted into cash easily; usually short-term government obligations. Accounts Receivable Simply stated, accounts receivables are the amounts owed to you and are evidenced on your balance sheet by promissory notes.

You should label all other accounts receivable appropriately and show them apart from the accounts receivable arising in the course of trade.

If these other amounts are currently collectible, they may be classified as current assets. Inventories Your inventories are your goods that are available for sale, products that you have in a partial stage of completion, and the materials that you will use to create your products.

The costs of purchasing merchandise and materials and the costs of manufacturing your various product lines are accumulated in the accounting records and are identified with either the cost of the goods sold during the fiscal period or as the cost of the inventories remaining at the end of the period.

Prepaid Expenses These expenses are payments made for services that will be received in the near future. Strictly speaking, your prepaid expenses will not be converted to current assets in order to avoid penalizing companies that choose to pay current operating costs in advance rather than to hold cash.

Often your insurance premiums or rentals are paid in advance. Investments Investments are cash funds or securities that you hold for a designated purpose for an indefinite period of time.

Investments include stocks or the bonds you may hold for another company, real estate or mortgages that you are holding for income-producing purposes. Your investments also include money that you may be holding for a pension fund.

Plant Assets Often classified as fixed assets, or as plant and equipment, your plant assets include land, buildings, machinery, and equipment that are to be used in business operations over a relatively long period of time.Java Culture coffee shop business plan financial plan. Java Culture is a gourmet coffee bar that boasts a fun, relaxed atmosphere for its customers.

Projected Balance Sheet.

Free Sample Retail Business Plan Template | Retail Store Business Plan Your service company balance sheet may differ from other companies, depending on the types of inventory and assets it carries. Include earnings from service calls that you have made but have yet to collect.
Archives - caninariojana.com REC will capitalize on the growing entertainment market across the world through the production and promotion of high quality entertainment. REC will own and control the masters master copiescopyrights and licenses of its product, which will enable REC to create immediate revenue streams while growing its music catalog into a multi-million dollar asset.
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Preparing a Balance Sheet | Small Business Center | BB&T Bank