1 Opening Balance Sheet The Wired Cup

Assets

Liabilities Current Assets:

Current Liabilities:

Cash $ 5,000

Bank Note $ 3,371 Accounts Receivable $ -

Accounts Payable $ - Pre-Opening Expenses

Accounting $ 250

Long Term Liabilities: $ 16,629 Advertising $ 500

Bank Charges $ 350

Total Liabilities $ 20,000 Cable/Internet Services $ 200

Insurance $ 2,000

Ingredients $ 3,500

Janitorial Supply $ 75

Lease $ 1,350

Legal Fees $ 2,500

Licenses/Fees/Permits $ 1,500

Payroll $ 2,400

Payroll Taxes $ 360

Telephone Services $ 150

Utilities $ 365

Total Current Assets $ 15,500

Equity

Owner's Capital $ 30,000 Fixed Assets:

Kitchen Equipment $ 9,000

Total Equity $ 30,000 Lease Hold Improvements $ 18,200

Office/Techn Equipment $ 2,300

Total Fixed Assets $ 29,500

Total Assets $ 50,000

Total Liability & Equity $ 50,000 Assumptions: Loan $20,000 5 years 14.54%; Payroll 3 workers $10/hr = $30/hr * two 40 hr. weeks = $2,400 Has Bob invested enough of his own money?

1. Did he wisely spend the initial $50,000?
2. Is $5000 going to be enough to carry him through the next 6 month time period?

Answer rating: 100% (QA)

ANSWER To assess whether Bob has invested enough of his own money and whether he wisely spent the initial 50000 lets analyze the financial situation o... View the full answer