Balance sheet for a new juice business

Here's a sample balance sheet for a new juice business:

Assets:

1. Cash: $10,000 (initial investment)
2. Accounts Receivable: $0 (since the business has just started, there are no outstanding invoices)
3. Inventory: $5,000 (initial stock of juice ingredients and packaging materials)
4. Equipment: $15,000 (juicer, blender, and other necessary equipment)
5. Furniture and Fixtures: $2,000 (office furniture, shelving, and other necessary fixtures)
6. Prepaid Expenses: $0 (since the business has just started, there are no prepaid expenses)
7. Total Assets: $32,000

Liabilities:

1. Accounts Payable: $0 (since the business has just started, there are no outstanding bills)
2. Loans Payable: $20,000 (borrowed funds from a bank or investor)
3. Total Liabilities: $20,000

Equity:

1. Common Stock: $12,000 (owner's investment)
2. Retained Earnings: $0 (since the business has just started, there are no retained earnings)
3. Total Equity: $12,000

Total Liabilities and Equity: $32,000

Notes:

• The initial investment of $10,000 is used to cover startup costs, such as equipment, inventory, and initial marketing expenses.
• The $20,000 loan is used to cover additional startup costs, such as rent, utilities, and employee salaries.
• The business has no accounts receivable or accounts payable at this point, since it has just started operating.
• The business has no prepaid expenses, since it has not yet made any payments for future services or goods.
• The business has no retained earnings, since it has not yet generated any profits.

This balance sheet provides a snapshot of the business's financial position at the start of its operations. As the business grows and generates revenue, the balance sheet will change to reflect its increasing assets, liabilities, and equity.

Here are some key ratios that can be calculated from this balance sheet:

• Current Ratio: 1.6 (Cash + Accounts Receivable / Accounts Payable) = $10,000 / $0 = 1.6
• Debt-to-Equity Ratio: 1.67 (Loans Payable / Total Equity) = $20,000 / $12,000 = 1.67
• Return on Equity (ROE): N/A (since the business has not yet generated any profits)

These ratios provide insights into the business's liquidity, solvency, and profitability.