reparing the Basic Financial Statements Marilyn Miller opened a floral shop using $15,000 of her own cash savings and with $45,000 in cash borrowed from her parents. She signed a lease on a small store for one year, agreeing to pay $1,050 per month in rent. During the first year of operations, Marilyn purchased fresh flowers from a local nursery for $7,500, paid $3,600 for utilities, and generated floral sales totaling $36,000. (Assume all transactions were cash transactions). Marilyn was hoping to be able to repay her parents one-half of the borrowed money at the end of the first year of operations. (a) Enter each of the above events in to the balance sheet equation as illustrated in the chapter. (b)Prepare an income statement, ( c) balance sheet, and (d) statement of cash flow for the floral shop. (a) Enter each of the above events in to the balance sheet equation as illustrated in the chapter. Hint - For this worksheet, make sure to enter all expense items as negative amounts.

Balance Sheet Equation
Transaction:	Issue stock	Borrow cash	Pay rent	Purchase flowers	Pay utilities	Floral sales	Balance sheet
Assets
Cash	$Answer	$Answer	$Answer	$Answer	$Answer	$Answer	$Answer
Total assets							$Answer
Liabilities
Loan Payable	Answer	Answer	Answer	Answer	Answer	Answer	$Answer
Total liabilities							$Answer
Shareholders' equity
Common stock	Answer	Answer	Answer	Answer	Answer	Answer	$Answer
Retained earnings							Answer
Revenue	Answer	Answer	Answer	Answer	Answer	Answer
Lease expense	Answer	Answer	Answer	Answer	Answer	Answer
Floral expense	Answer	Answer	Answer	Answer	Answer	Answer
Utilities expense	Answer	Answer	Answer	Answer	Answer	Answer
Total shareholders equity							$Answer

(b) Do not use negative signs with answers below.

Floral Shop Income Statement For Year 1
Revenue	$Answer
Expenses:
Lease expense	Answer
Floral expense	Answer
Utilities expense	Answer
Net Income	$Answer

(c)

Floral Shop Balance Sheet At End of Year 1
Assets			Liabilities
Cash	$Answer		Loan payable	$Answer
			Total liabilities	Answer
			Shareholders' equity
			Common stock	Answer
			Retained earnings	Answer
			Total shareholders equity	Answer
Total assets	$Answer		Total liabilities and shareholders equity	$Answer

(d) Use negative signs with answers to indicate a decrease in cash.

Floral Shop Statement of Cash Flows For Year 1
Operating activities
Revenue	$Answer
Lease expense	Answer
Floral expense	Answer
Utilities expense	Answer
Cash flow from operations	Answer
Investing activities
Cash flow from investing	Answer
Financing activities
Common stock issuance	Answer
Loan payable	Answer
Cash flow from financing	Answer
Change in cash	Answer
Cash, beginning of year	Answer
Cash, end of year	$Answer