Valuing a Start Up Conjuring Wealth out of Thin Air In order to raise money for a venture, you must first come up with a valuation for the nascent enterprise. Valuing a start up can seem like an act of legerdemain, a magic trick. How do you put a concrete value on something that…
Month: January 2017
The Big Picture of Financial Statements The three Financial Statements: Balance Sheet, Income Statement, and Cash Flow Statement, are interconnected and the accounting numbers flow through them. They are the measure of a company’s performance and health. The basic interconnection starts with a Balance Sheet showing the financial position at the beginning of the…
Financial Flow States: The Cash Flow Statement Besides the Income Statement and the Balance Sheet, there is a third financial statement called the Cash Flow Statement. The Cash Flow Statement reconciles the Income Statement with the actual cash position of the company (the balance in the bank account) by adding and subtracting revenues and…
Understanding Financial Statements: The Income Statement There are two basic financial statements: the Balance Sheet and the Income Statement. The daily operations of a business are measured in the money that comes in as revenues, the money that goes out as expenses, the money that is retained as profit, the money that is invested in…
What does the Balance Sheet balance? The balance sheet is structured to show the amount and type of assets an enterprise owns and how those assets are funded. One side of the balance sheet shows what you have (assets) and the other side shows how you paid for it (debt and equity). Assets can…
Balance Sheet Basics The Balance Sheet is a condensed statement that shows the financial position of an entity on a specified date, usually the last day of an accounting period. This is a follow up to the post on Financial Statements. Among other items of information, a balance sheet states • What Assets the…
Understanding Financial Statements Understanding Financial Statements Part 1 This series of posts will give you an understanding of Financial Statements ASAP. This knowledge can be highly impactful for the quality of your career, job prospects, and life. Everyone should have a basic understanding of Financial Statements: what they are and what information they provide. It’s…
