Balance Sheets ... Starting & Operating a New Small Business
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Making a Pro Forma Balance Sheet

A Balance Sheetis a financial statement that summarizes the the effects of: operating the business capitalizing the business any business investment decisions you make It is like a snap shot with a still camera. It shows what the business looks like financially at a given instant in time. Comparing periodic balance sheet numbers can show the health of a business and help in managing the business. Fianacial feasibility also requires that you look at the opeartion of the business as Income Statements. Additionally we look at the cash movement within a business in a Cash Flow Statement. These three statements combined give us a thorough picture of the business financially and are essential in determining financial feasibility. Practice

Below is a typical balance sheet layout for a simple business

Balance Sheet Example: Handout