Flatlands, a local coffee shop, reports the following financing and investing activities as of June 3 0
Question:
Flatlands, a local coffee shop, reports the following financing and investing activities as of June
:
The founder started the business with an equity capital contribution of $ In addition, she
received a bank loan of $ for years, at an interest rate of per year. The rent for the
shop is $ per year. The shop spent $ to purchase coffeemaking equipment and
$ to obtain inventories. Accounts payable totaled $ stemming entirely from the
inventory purchase. The owner maintains a checking account that has a balance of $ Based
on the above information, prepare Flatlands initial balance sheet as of June
Now, prepare the shops income statement as of December using the following information:
Price of each cup of coffee is $ and the shop sold a total of cups of coffee in the first
months. The company incurred marketing and promotional expenses of $ The owners
salary and benefits totaled $ Total rent for the shop was $ in the past six months.
Depreciation on the $ equipment over six months totaled $ The company reported a
total of $ in cost of goods sold. The company is in the tax bracket.
Lets say, the shop provided several catering services for credit sales, which totaled $ The
value of inventories as of December is $ Credit purchase to produce coffee and other
snacks and desserts next year totaled $ Balance on cash and marketable securities has
reached $ as of December Prepare Flatlands balance sheet as well as statement of cash
flow as of December Conduct a breakeven analysis and compute the shops survival revenue.Flatlands, a local coffee shop, reports the following financing
and investing activities as of June :
The founder started the business with an equity capital
contribution of $ In addition, she received a bank loan of
$ for years, at an interest rate of per year. The rent
for the shop is $ per year. The shop spent $ to
purchase coffeemaking equipment and $ to obtain
inventories. Accounts payable totaled $ stemming
entirely from the inventory purchase. The owner maintains a
checking account that has a balance of $ Based on the
above information, prepare Flatlands' initial balance sheet as of
June
Now, prepare the shop's income statement as of December
using the following information:
Price of each cup of coffee is $ and the shop sold a total of
cups of coffee in the first months. The company
incurred marketing and promotional expenses of $ The
owner's salary and benefits totaled $ Total rent for the
shop was $ in the past six months. Depreciation on the
$ equipment over six months totaled $ The
company reported a total of $ in cost of goods sold. The
company is in the tax bracket.
Let's say, the shop provided several catering services for credit
sales, which totaled $ The value of inventories as of
December is $ Credit purchase to produce coffee and
other snacks and desserts next year totaled $ Balance on
cash and marketable securities has reached $ as of
December Prepare Flatlands' balance sheet as well as
statement of cash flow as of December Conduct a break
even analysis and compute the shop's survival revenue.
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones