| | Balance Sheet | | | | | | | | | | | | | | Income Statement | | | | | | Income Statement | | | Balance Sheet | | | | Statement of Cash Flows | | | Ratios |
| Transaction | Assets | | | | | | | | Liabilities | | Equity |
| | | Operating Activities | | | | | Investing Activities | | Financing Activities | | | | | | Operating Activities |
| | Cash Assets | | + | Non-Cash Assets | | | | = | Liabilities | + | Contributed Capital | + | Earned Capital | | Revenues | - | Expenses | = | Net Incocme |
| | Cash | A/R | | Inventorry | | | Property, Plant, & Equipment |
| | | | | Lemonade | Cups | | | | | | | | | | | | | | | | | | | | T = 0.1 | T = End | | | | | Ratio | Acronym | Metric | Equation |
| HANS | | | | | | | | | | | | | | | | | | | | | Revenue | $ 200.00 | | Assets | | | | Cash from Operating Activities | | | Return on Assets | ROA | 50.00% | (Net Income) / (Average Assets) |
| Hans finances his company by providing $120 of his own money | $ 120.00 | | | | | | | | | | $ 120.00 | | | | | | | | | | Expenses | | | Cash | $ 120.00 | $ 200.00 | | Net Income | $ 80.00 | | Return on Equity | ROE | 50.00% | (Net Income) / (Average Equity) |
| Buys $100 of lemonade | $ (100.00) | | | $ 100.00 | | | | | | | | | | | | | | | | | Lemonade | $ 100.00 | | Total Assets | $ 120.00 | $ 200.00 | | Change in Non-Cash Accruals | $ - 0 | | Profitability | PM (Profit Margin) | 40.00% | (Net Income) / (Sales) |
| Buys $10 of cups | $ (10.00) | | | | $ 10.00 | | | | | | | | | | | | | | | | Cups | $ 10.00 | | | | | | Total Cash from Operations | $ 80.00 | | Productivity | AT (Asset Turnover) | 1.250 | (Sales) / (Average Assets) |
| Rents $10 Lemonade Stand for one day | $ (10.00) | | | | | | | | | | | | $ (10.00) | | | | $ 10.00 | | $ (10.00) | | Rent | $ 10.00 | | Liabilities | $ - 0 | $ - 0 | | Cash from investing Activities | $ - 0 |
| Sold all lemonade and cups for $200 in cash in one day | $ 200.00 | | | $ (100.00) | $ (10.00) | | | | | | | | $ 90.00 | | $ 200.00 | | $ 110.00 | | $ 90.00 | | Total Expenses | $ 120.00 | | Equity | $ 120.00 | $ 200.00 | | Cash from Financing Activities | $ - 0 |
| Totals | $ 200.00 | | | $ - 0 | $ - 0 | | | | | | $ 120.00 | | $ 80.00 | | $ 200.00 | | $ 120.00 | | $ 80.00 | | Net Income | $ 80.00 | | Total L & E | $ 120.00 | $ 200.00 | | Total Change in Cash | $ 80.00 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | Beginning Cash Balance | $ 120.00 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | Ending Cash Balance | $ 200.00 |
| FRANZ |
| Franz finances his company by providing $2,100 of his own money | $ 2,100.00 | | | | | | | | | | $ 2,100.00 | | | | | | | | | | Revenue | $ 200.00 | | Assets | | | | Cash from Operating Activities | | | Return on Assets | ROA | 3.74% | (Net Income) / (Average Assets) |
| Buys $1,000 of lemonade | $ (1,000.00) | | | $ 1,000.00 | | | | | | | | | | | | | | | | | Expenses | | | Cash | $ 2,100.00 | $ 100.00 | | Net Income | $ 80.00 | | Return on Equity | ROE | 3.74% | (Net Income) / (Average Equity) |
| Buys $100 of cups | $ (100.00) | | | | $ 100.00 | | | | | | | | | | | | | | | | Lemonade | $ 100.00 | | A / R | $ - 0 | $ 100.00 | | Change in Non-Cash Accruals | $ (1,080.00) | | Profitability | PM (Profit Margin) | 40.00% | (Net Income) / (Sales) |
| Buys Lemonade Stand for $1,000 | $ (1,000.00) | | | | | | $ 1,000.00 | | | | | | | | | | | | | | Cups | $ 10.00 | | Inventory | | | | Total Cash from Operations | $ (1,000.00) | | Productivity | AT (Asset Turnover) | 0.093 | (Sales) / (Average Assets) |
| Sold 10% of lemonade and cups for $200, 50% on credit | $ 100.00 | $ 100.00 | | $ (100.00) | $ (10.00) | | | | | | | | $ 90.00 | | $ 200.00 | | $ 110.00 | | $ 90.00 | | Depreciation | $ 10.00 | | Lemonade | $ - 0 | $ 900.00 | | Cash from investing Activities | $ (1,000.00) |
| 99 days left of useful life of Lemonade Stand | | | | | | | $ (10.00) | | | | | | $ (10.00) | | $ - 0 | | $ 10.00 | | $ (10.00) | | Total Expenses | $ 120.00 | | Cups | $ - 0 | $ 90.00 | | Cash from Financing Activities | $ - 0 |
| Totals | $ 100.00 | $ 100.00 | | $ 900.00 | $ 90.00 | | $ 990.00 | | $ - 0 | | $ 2,100.00 | | $ 80.00 | | $ 200.00 | | $ 120.00 | | $ 80.00 | | Net Income | $ 80.00 | | PP&E | $ - 0 | $ 990.00 | | Total Change in Cash | $ (2,000.00) |
| | | | | | | | | | | | | | | | | | | | | | | | | Total Assets | $ 2,100.00 | $ 2,180.00 | | Beginning Cash Balance | $ 2,100.00 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | Ending Cash Balance | $ 100.00 |
| | | | | | | | | | | | | | | | | | | | | | | | | Liabilities | $ - 0 | $ - 0 |
| | | | | | | | | | | | | | | | | | | | | | | | | Equity | $ 2,100.00 | $ 2,180.00 |
| | | | | | | | | | | | | | | | | | | | | | | | | Total L & E | $ 2,100.00 | $ 2,180.00 |
| Who would you rather give your money to if you wanted to invest? |
| Hans: |
| Franz: |
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