Week 4 Assignment
(LO5) Analyze the process used to launch an entrepreneurial venture
For your assignment this week, you are going to build a simple Income statement, Balance Sheet, and cash flow statement for the business you have been considering in earlier weeks. This is not an exercise in business planning, it’s an exercise in thinking about the various elements that make up these three key financial statements every entrepreneur is required to understand.
This assignment is formulated to get you a little more comfortable with how to read and interpret a basic income statement, a balance sheet, and a cash flow statement. If you have diligently completed all of the steps above, even if the numbers don’t make complete sense, you’ll do fine on this assignment.
1. Watch this 50 minute video lecture on financial statements Financial Planning/Budgeting – Entrepreneurship 101
2. Take screen shots for your notes of each of the financial statements. So, when the presenter starts talking about the Income statement, stop the presentation, make a screenshot (PRTSCR on keyboard) and copy and paste it to your first tab in an Excel workbook.
3. Do this same procedure for all three financial statements using one Microsoft Excel workbook that you will submit. Put each statement on a separate tab and label the tabs accordingly. There is no template for this project, you are on your own to design a professional looking Income Statement, Balance Sheet, and Cash Flow Statement. Proforma numbers are needed and include appropriate sums, nets, totals, averages, etc. I will be checking that each form “foots” to the bottom of the form. and that each sheet works properly.
4. Complete this process for all three statements, save the workbook and submit it.
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