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Chapter 6: Describe Your Company - Page 6.9
Start-up Funding Table

Start-up numbers aren't complete until they include plans for funding the start-up requirements, through debt or investment.

You can see from the previous example that the total of debt and investment must account for the total funding requirements. The money coming in must equal the money going out. That's a nice match between common sense and accounting principles: you can't spend it if you don't have it.

 

Copyright © Timothy J. Berry, 2006. All rights reserved.