On March 31, 2022, Lily's Green Thumb's checkbook shows a balance of$55,500 and her customers still owe her $15,000. During the period, the business collected $60,000 from customers. The checkbook lists payments for supplies totaling $2,000, and inventory totaling $3,000. Of the supplies and inventory, $600 and $1,000 is still on hand, respectively. She paid employees $5,200 and still owes them $800 for the last week of March. Lily purchased on account equipment from Office Works, Inc. for $6,000, payable on April 1, 2002. She estimates a 3-year useful life for the equipment. She paid $1,500 in rental expense for her office space during the period. She, also, paid $800 to repair the muffler on her truck. She paid dividends to her friends of $2,000 for the period. Finally, Lily paid Frank back the money she borrowed on March 15, 2022. You have been hired by Deep Pockets Bank to compile Lily's financial statements and evaluate the viability of the business.

Prepare an income statement for the three months january to march.

Answer rating: 100% (QA)

To prepare an income statement for the three months from January to March for Lilys Green Thumb we n... View the full answer