![]() ![]() On the liabilities and shareholders’ equity side are also two subcategories: short-term or “current” liabilities (accounts payable, credit card debt, operating credit, accrued expenses, taxes payable, the current portion of your long-term debt, etc.) and longer-term liabilities, such as term loans. On the assets side are your short-term or “current” assets (cash, accounts receivable, inventory, prepaid expenses), plus long-term or “fixed” assets (vehicles, equipment, land and buildings, investments, patents and goodwill, etc.) Your balance sheet tells you how much you own and what you owe. To calculate your net income, subtract interest, taxes, depreciation and amortization from your operating income. To do so, you take the gross profit and subtract overhead expenses related to running the business, such as office salaries, marketing, rent and insurance. Using your gross profit, you can calculate your operating income-also known as earnings before interest and taxes (EBIT). Direct costs are those connected directly to making a product or offering a service, such as labour and raw materials. To calculate your gross profit, you add up all your income and then subtract your direct costs (known as “ cost of goods sold” for manufacturers, or “ cost of sales” for retailers and wholesalers). It’s typically prepared on a monthly or quarterly basis. Sometimes called a profit-and-loss statement, the income statement tells you how much money you’re making and spending. Here are three key financial documents you need to understand to ensure the sustainability of your start-up. Your financial statements contain early warning sign about the financial health of your business. Growth & Transition Capital financing solutions Kauffman Fellows Program Partial Scholarship Venture Capital Catalyst Initiative (VCCI) ![]() Industrial, Clean and Energy Technology (ICE) Venture Fund
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |