Question

In: Accounting

You start a cookie business and this is what you do in your first month (all...

You start a cookie business and this is what you do in your first month (all of the below occurs during month 1):

You invest $30 in your cookie business

You get a $30 loan from your parents.

You go to the grocery store to buy flour and butter. Your ingredients can make 80 cookies. Your total cost is $40. You pay $20 in cash and $20 is charged to your account at the grocery store.

Your mom makes a batch of cookies for 40 glasses and charges $2 in labor (cash).

You sell the 40 cookies at $1 each. You receive cash for 20 cookies and the other 20 cookies are purchased on account.

You repay $15 of the loan.

Your parents want $2 in interest (cash).

The fleetmarket where you sells your cookies charges to buy an insurance policy. The insurance agent offers you a ten-week policy for the summer which costs $10 payable in advance (you have to pay for the entire policy in cash now, but you only expense one week in this accounting period).

You purchase a convection oven for $25. You also buy a tiny patch of land from a friend’s family for $5. You pay for the convection oven and the land with cash. You depreciate the convection over $2/week.

A customer pays $5 for cookies bought on account

Prepare your balance sheet, Income statement and cash flows

Solutions

Expert Solution


Related Solutions

Assume you are about to start your own business. What would you do from the beginning...
Assume you are about to start your own business. What would you do from the beginning to ensure that your employees will be satisfied and motivated?
You are given a budget of $1,000,000 to start your own business. What type of business...
You are given a budget of $1,000,000 to start your own business. What type of business would you start? Please state which form of business ownership would you use? State the reason(s) why. Provide the background information and an estimated budget for your business.
when you start business what are the project risks and what can you do to reduce...
when you start business what are the project risks and what can you do to reduce them?
Imagine that you are the owner of a cookie factory. In your first paragraph, provide examples...
Imagine that you are the owner of a cookie factory. In your first paragraph, provide examples of four production costs of your cookie factory. Which costs are fixed costs? Which costs are variable costs? In your second paragraph, provide two examples of business decisions that are affected by your costs. Clearly justify your answer.
You need $100,000 to start your own business. Consider the following loan contracts. All your payments...
You need $100,000 to start your own business. Consider the following loan contracts. All your payments are made at the end of each month for 10 years to pay off the loan Bank A: 12% APR with 3 points Bank B: 12.3% APR with 1 point Which bank would you choose? Bank A: Bank B: All work must be shown to get correct Unfortunately that is all the info given
If you were to start your own business (please state what business), how might you use...
If you were to start your own business (please state what business), how might you use Net Present Value to help you make a decision if this project is worthwhile. What numbers/inputs would you require to determine the NPV? TO RESPOND TO THIS QUESTION IF MY CHOICE OF THE BUSINESS IS REAL ESTATE. HOW CAN I RESPOND TO THESE QUESTION?
s an entrepreneur, you want to start a business. You know that the first step is...
s an entrepreneur, you want to start a business. You know that the first step is to consider drafting a business plan to organize all of your ideas. For this assignment, you will be submitting a business plan for your imaginary business. For research purposes, you can choose any state for the location of your business. Your business plan should include the following: Introduction of the proposed business/executive summary The executive summary is often considered the most important section of...
Suppose you and your friend want to start a business, and the friend suggests to start...
Suppose you and your friend want to start a business, and the friend suggests to start a movie dvd rental store in the bronx. Is that an attractive market? Discuss using Porter's Five Forces
Let's start this week with a review of "risk" and "returns" in business. First, what is...
Let's start this week with a review of "risk" and "returns" in business. First, what is "risk" in business? How can we measure risk? Next, what is the relationship between risk and return? Now, let's breakdown WACC and CAPM. What is the formula for WACC? What does each variable stand for? What is the formula for CAPM? What does each variable stand for? Finally, how does WACC and CAPM relate to "risk" and "return?"
If you could start your own small business franchise, what would it be and why? What...
If you could start your own small business franchise, what would it be and why? What are two specific disadvantages you would anticipate encountering as the owner of that small busness or franchise? What is the one thing you think would the most important thing to do in making sure your business was successful and how would you try to achieve it? Be as specific as possible in your response.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT