1. Below is your Balance Sheet from last week from the Lemonade Stand: Assets Liabilities Cash Accounts Receivable Inventory $95 $20 SO Accounts Payable Notes Payable $15 $90 $15 Prepaid Expense Fixed Assets $12$1 S2 $11 Owners Equity Original Investment Retained Earnings. Earnings week to date $2 $6 Total Assets $118 Total Liabilities & Owners Equity$118 c. a. As this is a new week, close the last week. b. Since we don't have any inventory, we're going to buy $40 dollars ready to sell lemonade With the $40 ready to sell lemonade, we can make 80 glasses of lemonade, each of them worth $2. We sell all 80 glasses in cash. d. Since you started selling lemonade again, you needed to inform everybody else so you advertised your business in local newspaper for $3 We owed our local shop $15 of inventory; we want to maintain a good relationship with the owner, so we pay back that debt. f. You go again to your local shop and take $40 dollars ready to sell lemonade, but you decide to pay it later. All of the people that owe you pay their debts. h. With the $40 ready to sell lemonade, we can make 80 glasses of lemonade, each of them worth $2. We sell 60 glasses in cash and 20 glasses our friends will pay later e Cash Income Statement Collections Inventory Paid Investment Expenses Paid Change in Cash Beginning Cash Ending Cash