Question: i need help answering these questions J's Lemonade Stand vs. C's Orange Juicery Fact J-1: On January 1, J's Lemonade Stand was started on an

J's Lemonade Stand vs. C's Orange Juicery Fact J-1: On January 1, J's Lemonade Stand was started on an initial investment of $50,000, provided by a group of investors. Fact J-2: On January 1, J purchased a lemonade-making machine with $20,000 cash, and they expect to use the machine for five years. Fact J3: During the year, J purchased $25,000 of water, sugar, and lemons, all of which was converted into lemonade and sold. Fact J 4: In exchange for the lemonade they sold, (a) J collected $35,000 of cash from customers; and (b) Some customers have not yet paid J in cash, but have promised to pay $5,000 by January 31 of the next year. Fact C-1: On January 1, C's Orange Juicery was started on an initial investment of $100,000, provided by a group of investors. Fact C-2: On January 1, C purchased a juicer for $40,000 cash, and they expect to use the machine for five years. Fact C-3: During the year, C purchased $40,000 of water, sugar, and oranges, all of which was converted into orange juice and sold. Fact C-4: In exchange for the orange juice they sold, (a) C collected $45,000 of cash from customers; and (b) Some customers have not yet paid C in cash, but have promised to pay $15,000 by January 31 of the next year. Which company performed better during the year? Provide detail to explain how you arrived at your answer. If you could have been one of the initial investors in either company, providing an investment of $10,000, which company would you have invested in? Again, provide detail to justify your answer. Note: there are no right" answers to these questions
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
