August 2025
Intermediate to advanced
312 pages
7h 33m
English
Content preview from The Business Plan Workbook, 11th Edition
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ASSIGNMENT 19 The balance sheet
So far in our example the money spent on ‘capital’ items such as the £/$/€12,500 spent on a computer and on converting the garage to suit business purposes has been ignored, as has the £/$/€9,108 worth of sheet music etc remaining in stock waiting to be sold and the £/$/€12,000 of money owed by customers who have yet to pay up. An assumption has to be made about where the cash deficit will be made up, and the most logical short-term source is a bank overdraft. The balance sheet is the accounting report that shows at any moment of time the financial position taking all these longer-term factors into account.
For High Note, the example we have been using in the other finance chapters, at the end of September the ...
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