Business

BUS 101 – Assignment 5 Suppose that you are an entrepreneur and your small business has been open more than a year. The

funds used to start the business were a combination of your personal savings and a $24,000 business

loan from your credit union. You understand the importance of collecting, analyzing, and

communicating financial information and therefore you have an Accounting Information System (AIS).

During the previous year your business had Revenues equal to $425,000, Cost of Goods Sold equal to

$45,000, and Operating Expenses equal to $210,000, and your business paid Income Taxes totaling

$48,000. On the final day of the previous year your business had Total Assets equal to $70,000 and

Total Liabilities equal to $20,000.

Assignment Prepare a one to two-page report that discusses the following points:

a. Define Revenues and Expenses and explain their relationship to Profit(or Loss)?

b. Using the Revenue and Expense data given above, what was the Net Income last year?

c. What is the Accounting Equation? Explain each term within the Accounting Equation?

d. Using the data given above, what was the Owners’ Equity on the final day of last year?

Additional requirements Submit your word-processed report electronically using BLACKBOARD. Follow the instructions provided

in the Assignment folder within the Course Content section of Blackboard.

Your submitted work must conform to or contain all of the following.

 A single computer file that opens on any campus computer (recommend Microsoft WORD)

 Filename that starts with your last name, for example, "Smith_Essay1.doc"

 Structured as a written report having multiple paragraphs with complete sentences (including

an introductory paragraph which includes a thesis statement offering a concise summary of the

main point or claim of the essay), appropriate language, grammar, and mechanics

 Use MLA Style formatting guidelines (general information on MLA is provided in the Assignment

section of Blackboard, additional information may be obtained by visiting The Writing Center

located on the Owens Toledo Campus in Founders Hall – FH 1123), specifically your report

should include:

o right-aligned in the header of every page is page numbers that include your name

o left-aligned at the top of first page is your name, instructor name, course name, and

date

o title of your paper centered above first paragraph

o proper citation, including a works cited page, of any works discussed within your essay

o text is double-spaced and font size is 11 or 12-point