Financial Statement

Hey guys! Today is the last day of my lesson this semester and I wanna explain a little about financial statement. Please enjoy!

The accounting reports that provide information about transactions in a business are called financial statements.The principal financial statements are the income statement, the balance sheet and the statement of cash flows.

Income statement is a summary of the revenue and expenses for a specific period  of time, such as a month or a year. The balance sheet is a list of the assets, liabilities, and owner's equity as of a specific date, usually at the close of the last day of a month or a year. Statement of cash flows is a summary of the cash receipts and cash payments  for a specific period of time such as a month or a year.

This post is the shortest so far but I still hope that this can be very helpful for anyone who read this. I told you before that this is the last day of my lesson and next week I'm having my final exam. Oh my God I'm so nervous and I can't stop thinking about it! Anyway, thank you for visiting my blog and wish me luck!

Jamblang as Local Food (part 2)

Basic Accounting Equation

Hello peeps! What are you up to? Today I'm gonna mention something about the accounting equation.

Assets are the properties owned by a business. The rights or claims to the properties are normally divided into two principal types:

1. The rights of creditors

2. The rights of owners

Liabilities are the rights of creditors represent debts of the business.

Owner's equity or capital are the rights of the owners.

The relationship between the two maybe stated in the form of an equation, as follows:

Assets = Liabilities + Owner's Equity

Assets are divided into two categories: Current Assets and Fixed Assets. Current Assets has limited life within one year. Fixed assets are long term (permanent) assets which life lasted more than one year. All accounts under current assets are: cash, banks, accounts receivable, inventory, supplies, prepaid insurance, prepaid rent, etc. All accounts under fixed assets are: land, building, equipment, vehicle, etc. Fixed assets are divided into two categories: Tangible Assets (can be seen physically), Intangible Assets (cannot be seen physically. ex: royalty, patent, franchise, expertise, network, certificate, etc.)

Revenue is the gross increase in owner's equity as a result of business and professional activities that earn income. Expense is the amount of assets or services use in the process of earning revenue. The difference between revenue and expense will give us a net income or net loss. The business earned net income if revenue excess expense and the business suffered loss if expense excess revenue.

Net Income = Revenue - Expense

Net Loss = Expense - Revenue

The expenses are divided into two categories: Fixed Expenses and Current Expenses. Fixed expenses are not influenced by production capacity (ex. rent building, salary, utilities: water, electricity and telephone bill.) Current expenses are influenced by the capacity of the production (ex.  materials used for production).

The statement of cash flows reports a firms major cash inflows and outflows for a period. It provide useful information about a firms ability to generate cash from operation, maintain and expand its operating capacity, meet its financial obligation, and pay dividends.

Cash Ending Balance = Cash Beginning Balance + Inflows - Outflows

That's it for today, I hope this post is useful and enjoy your weekend!

Food Additives and Business Plan

Hello ppl!  How are you? Excited for my newest post? Then let's get going!

Food additive is a functional substance intentionally added to food to enhance its flavor or appearance. Food additives can be separated into two main groups which are flavors and colors. Flavor itself divided into taste and smell. Many of natural additives have been used for centuries, but with the advent of processed foods, artificial (synthesis) additive have been introduced.

Example of food additives that change flavors:

·   Natural: Vanilla, Caramel, Lime Peel, Orange Leaves, Lemongrass Leaves, Galangal, Basil, Pandan, etc.

·         Half-natural: Shrimp Paste, etc.

·         Synthesis: Essence, Acid, etc.

Vanilla
http://cdn.playbuzz.com/cdn/41e0e11f-c5ba-4771-80c9-0a8acd36244a/accef4b6-f28e-489e-9c06-98525d8c299b.jpg

Caramel
bakeat350.blogspot.com

Lemongrass Leaf

http://p-fst2.pixstatic.com/5069f1d1fb04d60a6b0008ad._w.1500_s.fit_.jpg

Shrimp Paste
http://36.media.tumblr.com/0ca194fe6c544379ee35412168bfeadb/tumblr_mm9la5NXVx1rau2jyo3_500.jpg

Example of food additives that change colors:

·         Natural: Paprika, Turmeric, Pandan, Carmine, etc.

·         Half-natural: Red Yeast Rice, etc.

·         Synthesis: Tatrazine, Alurra Red, Indigotine, etc.

Paprika
http://33.media.tumblr.com/8221dc26b76a98f2cd50ad20b1699da8/tumblr_inline_n6cemteetr1sf3bgt.jpg

Turmeric
http://authoritynutrition.com/wp-content/uploads/2014/03/turmeric-roots-and-a-jar-of-turmeric-powder.jpg

Red Yeast Rice
https://www.wolfsonintegrativecardiology.com/wp-content/uploads/2014/10/red-yeast-rice.jpg

Half-natural food additive means it comes from natural food, but it wouldn’t be formed without food processing.

Agriculture can be done onsite or offsite. Onside means inside farm and deliberately managed for consumption. Offsite means it can be found on its real habitat such as Menyan, Gadung and Kecombrang (Indonesian wild plants).

There is three generations in managing food:

1.       First Generation: Seed. This is the generation where technology is needed to produce seed with large quantities and high quality, such as genetic engineering in plants.

2.       Second Generation: Cultivation. In this generation, Outcrossing can occur between unrelated genetic materials into a breeding line. The purpose is to increase genetic diversity, reducing the probability to disease or genetic abnormalities.

3.       Third Generation: Industry. After cultivation, food will be process and produce in large quantities using machines continuously. There is a lot of business opportunities in this generation.

The goal in starting businesses is to capitalize on an invention, pursue a passion, be their own boss and get rich, so we’ll need a business plan. The first thing to do is set strategic guide, like “where do you want to go?”, “how are you going to get there?”, “what market niches?”, “how much is it going to cost?”, “greatest profit opportunity?”. Then, find lenders and investors. Lenders will expect our good business track record, ability to repay, staying power and collateral. Unlike lenders, investors will expect competitive advantage, huge market, strong management team, strong marketing and sales plan, obscene return, etc. In businesses, we’ll also need exit strategies in case our business didn’t come off as we thought. Exit strategies could be selling the business, transferring the business to a family member, taking the company public or being acquired by a larger company.

https://cdn.evbuc.com/eventlogos/95004/dreamstime13489446small.jpg

Enjoy my posts this far? If you have any suggestion please don't mind write in the comments below.
Well, I'm so grateful for your visit, guys, so come back next week for my new post! Have a great day! ;)