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Finance 1)balance sheet 2)income statement 3) cash flow statement balance sheet 1 October 201 Items On The Balance

Sheet The following items can be found on the Balance Sheet and will be included into the sample Balance Sheet: I. Assets - these are physical (tangible) things or intangible items which have a monetary value and are owned by the business. On the Balance Sheet assets are divided into: a) current assets - which are reasonably expected to be realized in cash or sold within one year or less in the normal operations of the business; b) long-term (fixed) assets - permanent assets or relatively fixed in nature and used by the business in its operations for the period longer than one year. II. Equity (Owners' equity) - residual claim against total assets of business after all the liabilities are deducted. In other words equity represents right of the shareholders to get share of the assets the business owns after all liabilities have been paid. Equity is not classified into current and long-term part since it does not have maturity date and there is no obligation to pay back equity to the shareholders. It might be done only after the liquidation of the business. III. Liabilities - debts owed to third parties, i.e. creditors, which have a certain maturity date and must be repaid. Liabilities are also divided into 2 groups: a) current liabilities - payable within the period of one year or shorter. Usually to be repaid back from the current asset b) long-term liabilities - payable within the period longer than one year Assets Current assets Cash (including bank accounts) Inventory Prepaid insurance/deposits Furniture Computer equipment Car/van Etc $ 7,500 10,000 9,000 10,800 21,200 16,500 5,000 Liabilities/debts current liabilities Loan from the bank $ 50,000

Equity

50,000

Total current assets Long-term assets Office equipment, cost Office equipment, Net Total long-term assets Total

80.000

16,000 4,000 20,000 100,000

Inventory per year is 120,000.( Monthly 10,000) Furniture: 10 tables, 15 chairs, 3 sofas, 10 lamps, 2 wardrobes, 5 shelve stands, 10 telephones, Computer equipment: 10 laptops, 5 fax machines, 4 multifunctional devices, modem Cars-5, vans-2

Income statement
Income Services rendered Expenses Salaries Telephone & Internet Property rates and taxes Insurance Advertising costs Bank charges/interest paid Tax expense

333.000 270,000 3000 13,000 15,000 6,000 9,000 5,000

Net profit

20.000

Salaries: 15 staffs (1500$ monthly) Telephone bills 200$ per month Internet service 50$ per month

Cash flow statements

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