Posted by IB (NJ) on August 12, 2008 at 08:08:58:
In Reply to: Re: Question re. Business Income Statements posted by Ken Holmes on August 12, 2008 at 07:40:52:
Got it. I think I mentioned in the beginning that I was doing this for a new venture to pitch to some Investors I know. I was trying to figure out how they would know that x amount of dollars would be spent on purchasing houses that may take 1-2 months to actually sell. My thoughts were that the purchases would go down as expenses until the houses sold. But I guess not which would mean that they would show up on the cash flow statement?
I mean, if I get funding in October (for example) and I don't expect to see an actual sale until December-January, how do I show that during October and November money was spent purchasing properties to later resell? I thought it was the p&l statement but now I'm not so sure.
Ib