Subsection of: Creating an Effective Business Plan
Adapted from content excerpted from the American Express® OPEN Small Business Network
| Cash | Cash on hand in all checking, savings, and short-term investment accounts when books were closed at the end of the fiscal year |
| Accounts receivable | Income derived from all products or services for which you bill. Calculate this number based on what is logged into the books at the close of the fiscal year |
| Inventory | Take this from the cost of goods table. It is inventory of material used to manufacture your company’s products |
| Current assets | Includes cash, accounts receivable, inventory and other assets |
| Long-term or fixed assets | Long terms assets are so called because they will last more than one year as opposed to short-term assets that are spent or used up in manufacturing |
| Capital and plant | Book value or equipment and property, less depreciation |
| Investment | Investments of the company that cannot be converted into cash in less than one year |
| Long-term assets | Capital and plant plus investments and any other assets |
| Total assets | Sum of total assets and total long-term assets |
| Liabilities | Liabilities are also categorized as current or long-term |
| Accounts payable | All expenses that are due and payable |
| Accrued liabilities | Expenses incurred that have not been paid when books are closed |
| Taxes | Due and payable when books are closed |
| Total current liabilities | Accounts payable plus accrued liabilities plus taxes |
| Long-term liabilities | Liabilities that are not due in the next 12 months |
| Bonds payable | Bonds at end of year that are due over a period exceeding one year |
| Mortgage payable | The mortgage amount due when books close |
| Notes payable | Amount owed on long-term debt that will not be paid during current fiscal year |
| Total long-term liabilities | Bonds payable plus mortgage payable plus notes payable |
| Total liabilities | Total current plus long-term liabilities |
| Owners equity | Total assets minus total liabilities |
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| Development & Production | Sales & Marketing | Management | Financials |
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