A group of alumni has started a business, the Super Student Shuttle $($SSS$),$ to serve the student community at

Bronco University. The owners have been scouting, negotiating, etc. for a few months, and the business will

begin operations on August $1$st$,$ Year $1.$ SSS will offer semester shuttle passes $(4$ months$)$ for $$150,$ and

schoolyear passes $(8$ months$)$ for $$275,$ which is far less than parking on campus. They plan to run the shuttle

from a nearby lot to an area on campus near the Brody garage. The owners drove the route repeatedly in their

own cars and believe they can make the round trip in $15$ minutes. The owners acquired the required Class C

drivers license.

Here are the August events:

The owners of SSS opened a bank account on August $1$st and deposited $$300,000.$

On August $1$st SSS paid $$250$ for all necessary business permits and licenses.

SSS leased a lot on Vista Avenue. They paid $$12,000$ for a one$-$year term that begins August $1$st$.$

On August $1$st SSS purchased a used shuttle bus for $$100,000.$ The expected life is $5$ years, with an

estimated salvage value of $$40,000.$

On August $1$st SSS paid a $$2,400$ premium for an insurance policy that provides coverage for the shuttle

and general liability for one year.

On August $3$rd SSS had a sign printed and installed it on the lot. Exhibit

On August $5$th$,$ SSS signed a credit agreement with Royal Fuels to purchase shuttle fuel on account.

On August $7$th SSS began a marketing campaign via social media to the Bronco University community,

offering tours of downtown and shuttle transportation to and from the airport for anyone that

purchases a pass by August $15$th$.$ The tours and airport shuttle would run until the first day of the

semester.

On August $10$th SSS purchased fuel on account. Exhibit

On August $14$th$,$ SSS sold $35$ semester passes and $20$ schoolyear passes.

On August $15$th$,$ SSS began shuttling pass holders.

On August $20$th SSS purchased fuel on account. Exhibit

On August $22$nd$,$ SSS sold $240$ semester passes and $110$ schoolyear passes.

On August $29$th SSS purchased cleaning supplies. Exhibit

Required in The Provided Template:

Prepare an Income Statement

Prepare a Balance Sheet

Prepare a Statement of Cash$-$flows.

Submit the workbook in Canvas late submissions will not be accepted.

Answer rating: 100% (QA)

Super Student Shuttle SSS Financial Statements August Year 1 Assumptions Depreciation is calculated using the straightline method over 5 years No fuel ... View the full answer