business plan balance sheet by wanghonghx

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									APPENDIX 2
                                 BALANCE SHEET
The balance sheet shows the financial position of a business on a specific date. The balance sheet provides a
detailed listing of the assets that a business owns, the liabilities that are owed to other parties, and the owner's
equity interest. It is known as a balance sheet because, upon its completion, it must be in balance. In other
words, the total value of the business's assets must equal the total value of the liabilities and capital (equity) of
the business. The balance sheet is cumulative in nature in that it reports the results of all the financial activities
of the business since its formation. It describes the fundamental accounting equation of Assets = Liabilities +
Capital.

The December 31, 2002 balance sheet represents the financial condition of the company on the day it begins
operations. The December 31, 2003 balance sheet is a projection one year into the future and is based on
the budget and management's best estimate

ASSETS                            December 31, 2002                       December 31, 2003
                                     pre opening                       one year proforma
Current Assets
 Cash in Bank                    $ 35,000                             $ 20,000
 Accounts Receivable                                                  $ 5,000
 Less Res For Bad Debt                                                $ (3,000)
 Inventories                     $ 50,000                             $ 68,000
 Prepaid Expenses                $ 4,600                              $ 5,000
  Total Current Assets                        $ 89,600                               $ 101,000

Long Term Assets
 Land                            $   30,000                           $    30,000
 Buildings                       $   45,000                           $    45,000
 Vehicles                        $   45,000                           $    45,000
 Equipment                       $   10,000                           $    10,000
 Less Accum Depr                                                      $    (6,000)
  Total Long Term Assets                      $ 130,000                              $ 124,000

Total Assets                                  $ 219,600                              $ 225,000

LIABILITIES & EQUITY

Current Liabilities
 Accounts Payable                $ 50,000                             $ 65,000
 Taxes Payable
 Other Current Liabilities                                            $ 12,005
  Total Current Liabilities                   $ 50,000                               $ 77,005

Long Term Liabilities
 Notes Payable                   $ 109,600                            $ 102,000
Other Long Term Liabilities
  Total Long Term Liab           $ 109,600    $ 109,600               $ 102,000      $ 102,000

Total Liabilities                             $ 159,600                              $ 179,005

Stockholders' Equity
 Capital                         $ 60,000                             $ 60,000
 Retained Earnings                                                    $ (14,005)

  Total Stockholders' Equity*                 $ 60,000                               $ 45,995

Total Liabilities & Equity                    $ 219,600                              $ 225,000
*Owner's Investment

								
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