ENTREPRENEURSHIP IN ENTERTAINMENT TECHNOLOGY WELCOME!

TODAY’S AGENDA Financial Statements Income Statements (P&L) Balance Sheets Cash Flow Examples Simple Statements Zynga and Facebook

FINANCIAL STATEMENTS

3 MAIN TYPES Income Statement (P&L) Balance Sheet Cash Flow

INCOME STATEMENT (P&L) For a period of time (month, quarter, year, YTD) Revenue – Expenses = Income

BALANCE SHEET At a moment in time (specific date) Assets – Liabilities = Net Worth

CASH FLOW For a period of time (month, quarter, year, YTD) Beginning Cash – Ending Cash = Cash Flow

SOME ACCOUNTING TERMS Cash vs. Accrual Depreciation

EXAMPLES

SIMPLE STATEMENTS

FACEBOOK AND ZYNGA Source: Public Filings found at edgar.sec.gov

NEXT CLASS

FINANCIAL MODELS Plan vs. Model Developing a model for your company Turning the model into a plan

RESOURCES

Financial Statements Used in Class Facebook documents at Websites SEC Filings edgar.sec.govedgar.sec.gov IRS Employer’s Tax Guide Accounting Software Quickbooks Mint avc.com – MBA Mondays