From the course: Accounting Foundations: Bookkeeping

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Strangers and the power of financial statements

Strangers and the power of financial statements

From the course: Accounting Foundations: Bookkeeping

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Strangers and the power of financial statements

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- All right, let's imagine that we want to buy this building and convert it into a large ice cream production facility. Now how much do you think it would cost to get our ice cream business up and running? - Well, if we want to do this right, buying the land, building, equipment, and initial stock of raw materials? That's going to cost us about $100 million. - See, I can see it in my mind's eye, the gleaming stainless steel mixing vats, the happy employees wearing white clothes, white shoes, white caps to emphasize the cleanliness of the facility. The huge freezer storage rooms stacked with delicious ice cream. - Yeah, yeah, that's a great vision, but back to reality. Where would we get $100 million in financing to make this happen? - [Man With Glasses] If we want to buy $100 million in ice cream production assets, then we need $100 million in money from somewhere to buy them. - The reality is that if we want to go from small-size business people to medium-size business people with…

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