Scenario Let's say you decide to start a lawn mowing service for homes in your neighborhood. > Cells are input cells. Cost Associated With Setting up the Business Contribution to business from Savings Borrow from Parents Cost of Lawn Mower Gasoline Cost for Each Lawn Mowed Advertising Flyers Cost per month Price for Each Lawn Mowed Number of Lawns Mowed You already have transportation (a bike and a small trailer, for instance), so no costs are associated with it. Business Policies Lawn Mower useful life (Months) What you will learn? Meaning of Key Accounting Terminology 1 Investment Revenue Cost of Goods Sold Gross Profit Operating Costs Depreciation Profit Assets Equity Financial Statements Income Statement Balance Sheet Cash Flow Statement
Financial Statements Explanation Grass Roots Lawn Mowing "" Financial Statements Income Statement from 01/12/2021 to 31/12/2021 "" Revenue Cost of Goods Sold Gross Profit Advertising Depreciation Net Profit Balance Sheet as at 31/12/2021 "" ASSETS Cash Fixed Assets TOTAL ASSETS LIABILITIES Loans NET ASSETS EQUITY TOTAL EQUITY Cash Flow Statement from 01/12/2021 to 31/12/2021 "" Opening Cash Net Cash
Financial Statements Explanation Grass Roots Lawn Mowing "" Financial Statements Income Statement from 01/12/2021 to 31/12/2021 "" Revenue Cost of Goods Sold Gross Profit Advertising Depreciation Net Profit Balance Sheet as at 31/12/2021 "" ASSETS Cash Fixed Assets TOTAL ASSETS LIABILITIES Loans NET ASSETS EQUITY TOTAL EQUITY Cash Flow Statement from 01/12/2021 to 31/12/2021 "" Opening Cash Net Cash
Financial Statements Explanation Grass Roots Lawn Mowing "" Financial Statements Income Statement from 01/12/2021 to 31/12/2021 "" Revenue Cost of Goods Sold Gross Profit Advertising Depreciation Net Profit Balance Sheet as at 31/12/2021 "" ASSETS Cash Fixed Assets TOTAL ASSETS LIABILITIES Loans NET ASSETS EQUITY TOTAL EQUITY Cash Flow Statement from 01/12/2021 to 31/12/2021 "" Opening Cash Net Cash
Financial Statements Explanation Grass Roots Lawn Mowing "" Financial Statements Income Statement from 01/12/2021 to 31/12/2021 "" Revenue Cost of Goods Sold Gross Profit Advertising Depreciation Net Profit Balance Sheet as at 31/12/2021 "" ASSETS Cash Fixed Assets TOTAL ASSETS LIABILITIES Loans NET ASSETS EQUITY TOTAL EQUITY Cash Flow Statement from 01/12/2021 to 31/12/2021 "" Opening Cash Net Cash
Financial Statements Explanation Grass Roots Lawn Mowing "" Financial Statements Income Statement from 01/12/2021 to 31/12/2021 "" Revenue Cost of Goods Sold Gross Profit Advertising Depreciation Net Profit Balance Sheet as at 31/12/2021 "" ASSETS Cash Fixed Assets TOTAL ASSETS LIABILITIES Loans NET ASSETS EQUITY TOTAL EQUITY Cash Flow Statement from 01/12/2021 to 31/12/2021 "" Opening Cash Net Cash
Financial Statements Explanation Grass Roots Lawn Mowing "" Financial Statements Income Statement from 01/12/2021 to 31/12/2021 "" Revenue Cost of Goods Sold Gross Profit Advertising Depreciation Net Profit Balance Sheet as at 31/12/2021 "" ASSETS Cash Fixed Assets TOTAL ASSETS LIABILITIES Loans NET ASSETS EQUITY TOTAL EQUITY Cash Flow Statement from 01/12/2021 to 31/12/2021 "" Opening Cash Net Cash
Financial Statements Explanation Grass Roots Lawn Mowing "" Financial Statements Income Statement from 01/12/2021 to 31/12/2021 "" Revenue Cost of Goods Sold Gross Profit Advertising Depreciation Net Profit Balance Sheet as at 31/12/2021 "" ASSETS Cash Fixed Assets TOTAL ASSETS LIABILITIES Loans NET ASSETS EQUITY TOTAL EQUITY Cash Flow Statement from 01/12/2021 to 31/12/2021 "" Opening Cash Net Cash
Financial Statements Explanation Grass Roots Lawn Mowing The full finacial statement is shown after processing all the transactions for the month. Financial Statements Income Statement from 01/12/2021 to 31/12/2021 "" Revenue Cost of Goods Sold Gross Profit Advertising Depreciation Net Profit Balance Sheet as at 31/12/2021 Loan remains unpaid, how ever there is sufficient cash to repay the loan. ASSETS Cash Fixed Assets TOTAL ASSETS LIABILITIES Loans NET ASSETS EQUITY TOTAL EQUITY Cash Flow Statement from 01/12/2021 to 31/12/2021 Opening Cash Net Cash