In the reading and activities for this module we learned about the three common financial statements used in business and personal finance. They are the income statement, the cash flow statement, and the balance sheet. In this exercise we’re going to create our own balance sheet and cash flow statement. Here’s a reminder of what these statements are:
Together, these statements answer the questions “where am I?” and “what happened?” The balance sheet tells you where you are in terms of your finances – what you have and what you owe. And the cash flow statement tells you what happened – where your money came from and where it went. It’s a great idea to update these statements periodically (every year is most common) so you can keep track of your financial situation as you go through life.
Please follow the steps below to create these two statements:
To receive full credit your spreadsheets should be mathematically correct and contain all required information. Please enter 0’s in the spreadsheets where appropriate instead of leaving cells blank.
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