Things You'll Need:
- Cash flow statement
-
Step 1
List your company's current assets first. These are the things your company owns that can be converted into cash in the shortest possible amount of time. These assets are often called liquid assets because they can be converted to cash quickly.
-
Step 2
List cash equivalents. List the money your company holds in the bank account. Include certificates of deposit, market funds and savings bonds.
-
Step 3
List your company's short term investments. When your company generates more than enough cash, chances are some of that cash is going to be reinvested. Smart companies reinvest their cash in bonds. The reason is that bonds will have a maturity in less than a year, which yields to higher profits than a regular account. This is something you'll want to list on your balance sheet for investors or creditors to review.
-
Step 4
Mark your items that are used for operation. List these items right under your current assets list. Use information from your cash flow statement to justify your assets listed here.
-
Step 5
List the items you cannot convert into cash last. These items may include leased vehicles and items that you may defer payment for the next year. You may also list real estate that holds little equity, or properties that are more difficult to sell than your liquid assets. Listing all of these items will result in your assets being marked on your balance sheet, and ready for review by an investor or creditor.
