Startup Funding Espresso -- Outputs of the Financial Model
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. A financial model provides three outputs. Key financial statements, an operational cash-flow forecast, and key metrics for the business. Key financial statements include the profit and loss statement (called P&L), the balance sheet (BS), and the cash-flow statement (CF). The P&L shows revenue matched with costs and indicates whether or not you are profitable over a period of time. It can be used to compare different time periods such as this year versus last year or this quarter versus last quarter.\xa0\xa0 It\u2019s often used to compare the actual results with the budget.\xa0 The balance sheet shows the company\u2019s assets -- what it owns and liabilities -- what it owes.\xa0 This is a snapshot in time.\xa0 The balance sheet must always be in balance so the difference between assets and liabilities is shareholder equity (assets = liabilities + equity). The cash-flow statement shows cash inflows and outflows over a period of time.\xa0 Key metrics include gross margin, profit margin, cash runway, and more.\xa0 Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.Let\u2019s go startup something today.-----For more episodes from Investor Connect, please visit the site at: Check out our other podcasts here: For Investors check out: For Startups check out: For eGuides check out: For upcoming Events, check out For Feedback please contact info@tencapital.group