Tool 1: Sample Balance Sheet If you have a real business idea in mind, try filling out this form (possibly with some small adaptations) for your proposed product or service. What conclusions do you draw? Current Year Forecasted periods Assets $ $ Current Assets Cash (Note) Inventory (Note) Prepaid Expenses Total current assets Property equipment (Note) Equipment Office furniture and fixtures Leasehold improvements Less - accumulated depreciation and amortization Other assets: Organization costs, net of accumulated amortization (Note) Liabilities and stockholders' equity Current liabilities Current portion of long-term obligations Accounts payable (Note) Accrued expenses Federal and state income taxes payable Total current liabilities Long term obligations (Note) Stockholders' equity Common stock, no par value Authorized - shares Issued and outstanding - shares Retained earnings (accumulated deficit) A business plan should include at a minimum the current year's financial results and a forecasted financial statement which includes significant forecast assumptions. The forecasted financial statements should be presented for a minimum of three years with five years preferred. The forecast should be presented monthly for year one, quarterly or monthly for year two, and annually for all subsequent forecasted periods. Practical note: Total liabilities and stockholders' equity should equal total assets. Tool 2: Sample forecasted statements of income and retained earnings Current Year Forecasted periods Revenue (Note) $ $ Cost of sales (Note) Salaries and wages Payroll taxes and fringe benefits Product costs Rent expense Equipment lease Utilities Depreciation and amortization Total operating expenses Gross margin (deficit) Selling, general, and administrative expenses (Note): Advertising Administrative Salaries and wages Payroll taxes and fringe benefits Commissions Insurance Depreciation and amortization Total selling, general, and administrative Income from operations Other (income) expenses Interest expense Interest income Total other (income) expense Income before provision for income taxes Provision for income taxes (Note): Current federal and state income taxes Net income (loss) Retained earnings, beginning of period Retained earnings, end of period Practical note: Ending retained earning should agree with the ending retained earnings number on the balance sheet.