1. ENTREPRENEURSHIP IN ENTERTAINMENT TECHNOLOGY WELCOME!

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

3. FINANCIAL STATEMENTS

4. 3 MAIN TYPES Income Statement (P&L) Balance Sheet Cash Flow

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

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

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

8. SOME ACCOUNTING TERMS Cash vs. Accrual Depreciation

9. EXAMPLES

10. SIMPLE STATEMENTS

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

12. NEXT CLASS

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

14. RESOURCES

15. Financial Statements Used in Class Facebook documents at http://edgar.sec.gov/Archives/edgar/data/1326801/000119312512034517/d287954ds1.htm http://edgar.sec.gov/Archives/edgar/data/1326801/000119312512034517/d287954ds1.htm Websites SEC Filings edgar.sec.govedgar.sec.gov IRS Employer’s Tax Guide www.irs.gov/pub/irs-pdf/p15.pdfwww.irs.gov/pub/irs-pdf/p15.pdf Accounting Software Quickbooks www.quickbooks.comwww.quickbooks.com Mint www.mint.comwww.mint.com avc.com – MBA Mondays www.avc.com/a_vc/mba-mondays/www.avc.com/a_vc/mba-mondays/ www.avc.com/a_vc/2010/03/the-profit-and-loss-statement.html www.avc.com/a_vc/2010/03/the-balance-sheet.html www.avc.com/a_vc/2010/03/cash-flow.html www.avc.com/a_vc/2010/04/analyzing-financial-statements.html