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Sweet Soda Shop Financial Overview

The Sweet Soda Shop balance sheets for September 30, 2005 and October 6, 2005 and income statement and statement of cash flows for October 1-6, 2005 are presented. As of October 6, 2005, the Sweet Soda Shop had more cash, higher total assets and retained earnings compared to September 30, 2005. The income statement shows revenues of $5,500 and expenses of $4,000, resulting in net income of $1,500 for the period. The statement of cash flows shows the shop received $30,000 from capital stock sold and had $22,000 increase in cash for the month.

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Abbas Khan
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242 views6 pages

Sweet Soda Shop Financial Overview

The Sweet Soda Shop balance sheets for September 30, 2005 and October 6, 2005 and income statement and statement of cash flows for October 1-6, 2005 are presented. As of October 6, 2005, the Sweet Soda Shop had more cash, higher total assets and retained earnings compared to September 30, 2005. The income statement shows revenues of $5,500 and expenses of $4,000, resulting in net income of $1,500 for the period. The statement of cash flows shows the shop received $30,000 from capital stock sold and had $22,000 increase in cash for the month.

Uploaded by

Abbas Khan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd

Part a.

The Sweet Soda Shop


Balance Sheet
30-Sep-05
Assets in Dollars $ Liabilities and Owner's equity
Cash 7400 Liabilities
Accounts Receivable 1250 Notes Payable
Supplies 3440 Accounts Payable
Land 55000 Total Liabilities
Building 45500 Owner's equity
Furniture and Fixtures 20000 Capital Stock
Retained Earnings
Total Assets 132590 Total

Part b.
The Sweet Soda Shop
Balance Sheet
6-Oct-05
Assets in Dollars $ Liabilities and Owner's equity
Cash 29400 Liabilities
Accounts Receivable 1250 Notes Payable
Supplies 4440 Accounts Payable
Land 55000 Total Liabilities
Building 45500 Owner's equity
Furniture and Fixtures 38000 Capital Stock
Retained Earnings
Total Assets 173590 Total

Part b. Income Statement


The Sweet Soda Shop
Income Statement
For the Period October 1-6, 2005

Revenue
Expenses
Net Income

Part b. Statement of Cash Flows


The Sweet Soda Shop
Statement of Cash Flows
For the Period October 1-6, 2005
Cash flow from Operating Activities:
Cash received from revenue transection
Cash paid for expenses
Purchase of Supplies
Payment of accounts payables
Net cash flow provided by operating activities
Cash flow from Investing Activities:
None

Cash flow from Financing Activities:


Cash received from capital stock sold
Increase in cash for month
Cash balance, October 1, 2005
Cash balance, October 6, 2005

Part c.
The Sweet Soda shop is at stronger financial position on October 6, 2005 than September 30,
p

s and Owner's equity


Liabilities In Dollars $
Notes Payable 70000
counts Payable 8500
otal Liabilities 78500
wner's equity
Capital Stock 50000
tained Earnings 4090
Total 132590

s and Owner's equity


Liabilities In Dollars $
Notes Payable 70000
counts Payable 18000
otal Liabilities 88000
wner's equity
Capital Stock 80000
tained Earnings 5590
Total 173590

6, 2005
In Dollars $
5500
-4000
1500

The Sweet Soda Shop


tatement of Cash Flows
he Period October 1-6, 2005
In Dollars $ In Dollars $
ansection 5500
es -4000
-1000
ables -8500
ting activities -8000

ock sold 30000


nth 22000
2005 7400
2005 29400

r 6, 2005 than September 30, 2005 due to the reason that company had highly liquid asset

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