Guam Business Resource Guide

Non-Current Liabilities = debt which will not become
due in the next 12 months.
Equity = this equates to the difference between
total assets and total liabilities and may also reveal
amounts of equity held in common or preferred
stock, treasury stock and retained earnings.
3.3.7.2 Profit and Loss Statement
Your profit and loss statement (also referred to as
an income statement) lists your revenues and expenses,
and tells you the profit or loss of your business
for a given period of time. It is helpful for
planning and to help control operations expenses.
List monthly projections for the first year and include
the following information:
Sales Projections - Include the number of units
sold, the retail price, the net price and the gross
revenue.
Cost of Goods - Include your cost for manufacturing
a single unit including labor and all other indirect
costs such as shipping, packaging, etc.
Controllable Expenses - This includes salaries and
payroll expenses (benefits, etc.), legal and accounting
expenses, advertising and marketing expenses,
auto expenses, office supplies, utilities,
repair and maintenance, and other outside services.
Anything that fluctuates in cost from month
to month.
3.3.7.3 Monthly Cash Flow Projections
As stated in the business planning section, cash
flow management is essential to maintaining business
operations. To best prepare for your cash flow
needs, and to demonstrate to lenders that you
have a sound idea of what your cash needs will be,
prepare a monthly cash-flow projection = to summarize
your likely income against your certain expenses.
It is best to provide a cash flow statement
for a twelve month period so that you can plan for
the short and longterm. Doing so will help you determine
how you should operate each coming
month.
There is no need to struggle developing these financial
statements. The Service Corps of Retired
Executives, a resource partner of the US Small
Business Administration, provides excellent templates
for the above mentioned financial statements
at http://www.score.org/
template_gallery.html., and you can source a variety
of guidance tools simply by using a web
browser to search for information and tips on completing
templates of these statements. Remember
it is always advisable to have a certified public accountant
review your financial statements.
Fixed Expenses - These include office rent, depreciation
(amortization of capital assets), loan payments,
insurance, licenses and permits, and other
fixed monthly expenses.
Once you have these items listed, subtract your
total expenses from your gross profit to get your
Net Profit (or Loss) before taxes. Enter your tax
information and be sure you include all taxes such
as sales tax, excise tax, property tax, etc. To arrive
at your Net Profit (or loss) after taxes, take
the total tax figure and subtract it from your Net
Profit (or Loss) before taxes.
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