1. BUSINESS PLAN- PART 5 FINANCIAL INFORMATION

2. THREE IMPORTANT FINANCIAL STATEMENTS Income Statement Cash Flow Statement Balance Sheet

3. INCOME STATEMENT The Income Statement shows income and earnings over a period of time. For your Business Plan use the period of one year. Included in this statement are sales, cost of making those sales, and the fixed costs associated with the sale of the goods or services.

4. EXAMPLE Happy Hoppy Company Income Statement Year 1 Revenues Rabbits and Feed82000 Cost of Goods Sold Cost of raising rabbits45000 Total Revenue37000 Expenses Payroll15000 Supplies8000 Total Expenses23000 Net Income/(Loss)14000

5. CASH FLOW STATEMENT The Cash Flow Statement is similar to the Income Statement but tracks the flow of cash over a period of time. Again, use a one year time frame for your Business Plan.

6. EXAMPLE Happy Hoppy Company Cash Flow Statement Year 1 Revenues 82000 Expenditures Compensation15000 Marketing8000 Supplies3000 Cash Flow from Operations56000

7. BALANCE SHEET Unlike the Income Statement and Cash Flow Statement, the Balance Sheet shows a snapshot of assets, liabilities and equity at a single point in time. For the purposes of the Business Plan, we won’t include this now.