BUS599 week4 Assignment

Page 1

Sample Reports for Season Two Balance Sheet Season 1 Season 2 Assets Cash $ 185.90 $ 425.65 Inventories $ 10.05 $ 14.85 Equipment $ 9.00 $ 14.75 Total Assets $ 204.95 $ 455.25 Liabilities Account Payables $ 39.00 $ 58.00 Total Liabilities $ 39.00 $ 58.00 Equity Owner Capital $ 40.00 $ 40.00 Retain Earnings $ 125.95 $ 357.25 Total Equity $ 165.95 $ 397.25 Total Equity & Liabilities $ 204.95 $ 455.25 Income Statement Revenue $ 185.90 $ 328.00 Expenses $ 59.95 $ 96.70 Earnings $ 125.95 $ 231.30 Financial Report ROE 75.9% 58.2% ROA 61.5% 50.8% Profit Margin 67.8% 70.5% Inventory Turnover 5.97 6.51 Asset Turnover 0.907 0.720 Current Ratio 5.02 7.59 Cash Ratio 4.77 7.34 Debt-Equity Ratio 0.235 0.146

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Journal entries for season one used for reports on Page 1 Journal First Season Debit Credits Date Description Account Amount Account Amount

1 Form Partnership Cash $ 40.00 Owner Equity $ 40.00

1 Buy 1 pitchers & 1 spoon Equipment $ 5.75 Account Payable $ 5.75

1 Purchase supplies Inventory $ 13.75 Account Payable $ 13.75

1 Sold 56 @ 0.30 Cash $ 16.80 Revenue $ 16.80 1 Supplies used Expenses $ 8.67 Inventory $ 8.67

2 Purchase supplies Inventory $ 6.75 Account Payable $ 6.75

2 Supplies used Expenses $ 8.76 Inventory $ 8.76 2 Sold 52 @ 0.40 Cash $ 20.80 Revenue $ 20.80

3 Purchase supplies Inventory $ 13.75 Account Payable $ 13.75

3 Sold 56 @ 0.50 Cash $ 28.00 Revenue $ 28.00 3 Supplies used Expenses $ 8.67 Inventory $ 8.67

4 Paid Store Account Account Payable $ 40.00 Cash $ 40.00

4 Purchase supplies Inventory $ 9.25 Account Payable $ 9.25

4 Supplies used Expenses $ 8.64 Inventory $ 8.64 4 Sold 52 @ 0.60 Cash $ 31.20 Revenue $ 31.20

5 Buy 1 pitchers Equipment $ 3.25 Account Payable $ 3.25

5 Purchase supplies Inventory $ 10.50 Account Payable $ 10.50

5 Supplies used Expenses $ 12.99 Inventory $ 12.99 5 Sold 68 @ 0.60 Cash $ 40.80 Revenue $ 40.80

6 Purchase supplies Inventory $ 16.00 Account Payable $ 16.00

6 Supplies used Expenses $ 12.22 Inventory $ 12.22 6 Sold 45 @ 0.70 Cash $ 48.30 Revenue $ 48.30

Total Debits $ 404.85 Total Credits $ 404.85

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Journal entries for season two used for reports on Page 1 Journal Second Season Debit Credits Date Description Account Amount Account Amount

1 Paid Store Account Account Payable $ 39.00 Cash $ 39.00

1 Purchase supplies Inventory $ 12.50 Account Payable $ 12.50

1 Sold 108 @ 0.40 Cash $ 43.20 Revenue $ 43.20 1 Supplies used Expenses $ 16.60 Inventory $ 16.60

2 Buy 1 pitchers & 1 spoon Equipment $ 5.75 Account Payable $ 5.75

2 Purchase supplies Inventory $ 28.50 Account Payable $ 28.50

2 Supplies used Expenses $ 15.83 Inventory $ 15.83 2 Sold 100 @ 0.50 Cash $ 50.00 Revenue $ 50.00

3 Purchase supplies Inventory $ 3.50 Account Payable $ 3.50

3 Sold 106 @ 0.50 Cash $ 53.00 Revenue $ 53.00 3 Supplies used Expenses $ 16.63 Inventory $ 16.63

4 Paid Store Account Account Payable $ 49.25 Cash $ 49.25

4 Purchase supplies Inventory $ 17.50 Account Payable $ 17.50

4 Supplies used Expenses $ 14.32 Inventory $ 14.32 4 Sold 83 @ 0.60 Cash $ 49.80 Revenue $ 49.80

5 Purchase supplies Inventory $ 31.00 Account Payable $ 31.00

5 Supplies used Expenses $ 16.69 Inventory $ 16.69 5 Sold 109 @ 0.60 Cash $ 65.40 Revenue $ 65.40

6 Purchase supplies Inventory $ 9.50 Account Payable $ 9.50

6 Supplies used Expenses $ 16.63 Inventory $ 16.63 6 Sold 111 @ 0.50 Cash $ 66.60 Revenue $ 66.60

Total Debits $ 621.20 Total Credits $ 621.20

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Sample data from Game for season one used for the journal on Page 2 First season Day 1 - Weather was normal Partnership formed using $20 cash from each of two partner as initial capital so after forming partnership starting inventory: cash = $40. Purchases charged today are 1 pitchers for $3.25, 1 mixing spoons for $2.5, 150 drinking cups for $4.5, 15 tubs of lemonade mix for $7.5, 1 bags of ice for $1.75. Today sales = $16.8 (56 @ 0.3) out of 98 in 4.25 hours. Inventory used 64 drinking cups value at $1.92, 10 tubs of lemonade mix value at $5, 1 bags of ice value at $1.75. Ending cash was $56.8 and the store balance was $19.5 Day 2 - Weather was normal Starting Inventory: cash = $56.8, pitchers = 1 worth $3.25, mixing spoons = 1 worth $2.5, drinking cups = 86 worth $2.58, tubs of lemonade mix = 5 worth $2.5. Purchases charged today are 10 tubs of lemonade mix for $5, 1 bags of ice for $1.75. Today sales = $20.8 (52 @ 0.4) out of 93 in 3.75 hours. Inventory used 67 drinking cups value at $2.01, 10 tubs of lemonade mix value at $5, 1 bags of ice value at $1.75. Ending cash was $77.6 and the store balance was $26.25 Day 3 - Weather was sunny Starting Inventory: cash = $77.6, pitchers = 1 worth $3.25, mixing spoons = 1 worth $2.5, drinking cups = 19 worth $0.57, tubs of lemonade mix = 5 worth $2.5. Purchases charged today are 150 drinking cups for $4.5, 15 tubs of lemonade mix for $7.5, 1 bags of ice for $1.75. Today sales = $28 (56 @ 0.5) out of 105 in 3.5 hours. Inventory used 64 drinking cups value at $1.92, 10 tubs of lemonade mix value at $5, 1 bags of ice value at $1.75. Ending cash was $105.6 and the store balance was $40 Day 4 - Weather was normal Paid store charge account balance of $40. Starting Inventory: cash = $65.6, pitchers = 1 worth $3.25, mixing spoons = 1 worth $2.5, drinking cups = 105 worth $3.15, tubs of lemonade mix = 10 worth $5. Purchases charged today are 15 tubs of lemonade mix for $7.5, 1 bags of ice for $1.75. Today sales = $31.2 (52 @ 0.6) out of 100 in 4.75 hours. Inventory used 63 drinking cups value at $1.89, 10 tubs of lemonade mix value at $5, 1 bags of ice value at $1.75. Ending cash was $96.8 and the store balance was $9.25 Day 5 - Weather was normal Starting Inventory: cash = $96.8, pitchers = 1 worth $3.25, mixing spoons = 1 worth $2.5, drinking cups = 42 worth $1.26, tubs of lemonade mix = 15 worth $7.5. Purchases charged today are 1 pitchers for $3.25, 150 drinking cups for $4.5, 5 tubs of lemonade mix for $2.5, 2 bags of ice for $3.5. Today sales = $40.8 (68 @ 0.6) out of 125 in 5 hours. Inventory used 83 drinking cups value at $2.49, 14 tubs of lemonade mix value at $7, 2 bags of ice value at $3.5. Ending cash was $137.6 and the store balance was $23 Day 6 - Weather was normal Starting Inventory: cash = $137.6, pitchers = 2 worth $6.5, mixing spoons = 1 worth $2.5, drinking cups = 109 worth $3.27, tubs of lemonade mix = 6 worth $3. Purchases charged today are 25 tubs of lemonade mix for $12.5, 2 bags of ice for $3.5. Today sales = $48.3 (69 @ 0.7) out of 132 in 4.75 hours. Inventory used 74 drinking cups value at $2.22, 13 tubs of lemonade mix value at $6.5, 2 bags of ice value at $3.5. Ending cash was $185.9 and the store balance was $39

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Sample data from Game for season two used for the journal on Page 3 Second season Day 1 - Weather was sunny Paid store charge account balance of $39. Starting Inventory: cash = $146.9, pitchers = 2 worth $6.5, mixing spoons = 1 worth $2.5, drinking cups = 35 worth $1.05, tubs of lemonade mix = 18 worth $9. Purchases charged today are 100 drinking cups for $3, 10 tubs of lemonade mix for $5, 2 bags of ice for $3.5. Today sales = $43.2 (108 @ 0.4) out of 169 in 4.75 hours. Inventory used 120 drinking cups value at $3.6, 19 tubs of lemonade mix value at $9.5, 2 bags of ice value at $3.5. Ending cash was $190.1 and the store balance was $11.5 Day 2 - Weather was normal Starting Inventory: cash = $190.1, pitchers = 2 worth $6.5, mixing spoons = 1 worth $2.5, drinking cups = 15 worth $0.45, tubs of lemonade mix = 9 worth $4.5. Purchases charged today are 1 pitchers for $3.25, 1 mixing spoons for $2.5, 250 drinking cups for $7.5, 35 tubs of lemonade mix for $17.5, 2 bags of ice for $3.5. Today sales = $50 (100 @ 0.5) out of 132 in 5.25 hours. Inventory used 111 drinking cups value at $3.33, 18 tubs of lemonade mix value at $9, 2 bags of ice value at $3.5. Ending cash was $240.1 and the store balance was $45.75 Day 3 - Weather was sunny Starting Inventory: cash = $240.1, pitchers = 3 worth $9.75, mixing spoons = 2 worth $5, drinking cups = 154 worth $4.62, tubs of lemonade mix = 26 worth $13. Purchases charged today are 2 bags of ice for $3.5. Today sales = $53 (106 @ 0.5) out of 132 in 4 hours. Inventory used 121 drinking cups value at $3.63, 19 tubs of lemonade mix value at $9.5, 2 bags of ice value at $3.5. Ending cash was $293.1 and the store balance was $49.25 Day 4 - Weather was normal Paid store charge account balance of $49.25. Starting Inventory: cash = $243.85, pitchers = 3 worth $9.75, mixing spoons = 2 worth $5, drinking cups = 33 worth $0.99, tubs of lemonade mix = 7 worth $3.5. Purchases charged today are 300 drinking cups for $9, 10 tubs of lemonade mix for $5, 2 bags of ice for $3.5. Today sales = $49.8 (83 @ 0.6) out of 121 in 5 hours. Inventory used 94 drinking cups value at $2.82, 16 tubs of lemonade mix value at $8, 2 bags of ice value at $3.5. Ending cash was $293.65 and the store balance was $17.5 Day 5 - Weather was sunny Starting Inventory: cash = $293.65, pitchers = 3 worth $9.75, mixing spoons = 2 worth $5, drinking cups = 239 worth $7.17, tubs of lemonade mix = 1 worth $0.5. Purchases charged today are 55 tubs of lemonade mix for $27.5, 2 bags of ice for $3.5. Today sales = $65.4 (109 @ 0.6) out of 155 in 4.25 hours. Inventory used 123 drinking cups value at $3.69, 19 tubs of lemonade mix value at $9.5, 2 bags of ice value at $3.5. Ending cash was $359.05 and the store balance was $48.5 Day 6 - Weather was sunny Starting Inventory: cash = $359.05, pitchers = 3 worth $9.75, mixing spoons = 2 worth $5, drinking cups = 116 worth $3.48, tubs of lemonade mix = 37 worth $18.5. Purchases charged today are 200 drinking cups for $6, 2 bags of ice for $3.5. Today sales = $66.6 (111 @ 0.6) out of 139 in 4 hours. Inventory used 121 drinking cups value at $3.63, 19 tubs of lemonade mix value at $9.5, 2 bags of ice value at $3.5. Ending cash was $425.65 and the store balance was $58