Scenario:

On December $31,2022,$ you decide to open a lemonade stand. You incorporate the business and

make yourself the sole owner. You open a business checking account, deposit $$100,000$ of your

own money, and borrow $$50,000$ from the bank. The bank agrees to lend you the $$50,000$ at a $10\%$

interest rate, with repayment due in $5$ years. You set the number of shares outstanding at $10,000.$

You spend $$20,000$ on lemons, sugar, and cups $($inventory$).$ Additionally, you purchase a lemon

squeezer and a lemonade stand for $$30,000($useful life of $3$ years$).$

Question: What does the opening balance sheet look like? $($Build the balance sheet as of

$\frac{12}{31}\frac{?}{2022}$

During the fiscal year ended December $31,2023$:

You sold $$100,000$ in lemonade but collected $$80,000$ in cash $($customers still owe you

$$20,000.$

You used up all your inventory.

You hired a cashier and paid them $$15,000$ in cash.

You depreciate the lemon squeezer and lemonade stand $($useful life of $3$ years$).$

You pay interest expense.

You also have to pay $21\%$ of pretax profits in taxes.

Additionally, you bought $$30,000$ in new inventory to replenish supply $($ $$20,000$ in cash,

$$10,000$ on credit$).$

At year$-$end, you spent $$40,000$ on a new lemonade stand $($no depreciation recorded in the

current year$).$

You paid yourself a $$10,000$ dividend.

Question: Build the three financial statements for the fiscal year $2023.$