Preparing the Basic Financial Statements Marilyn Miller opened a floral shop using $45,000 of her own cash savings and with $135,000 in cash borrowed from her parents. She signed a lease on a small store for one year, agreeing to pay $3,150 per month in rent. During the first year of operations, Marilyn purchased fresh flowers from a local nursery for $22,500, paid $10,800 for utilities, and generated floral sales totaling $108,000. (Assume all transactions were cash transactions). Marilyn was hoping to be able to repay her parents one-half of the borrowed money at the end of the first year of operations. (a) Enter each of the above events in to the balance sheet equation as illustrated in the chapter. (b)Prepare an income statement, ( c) balance sheet, and (d) statement of cash flow for the floral shop.

Special order carson manufacturing, inc., sells a single product for $36 per unit. at an operating level of 8,000 units, variable costs are $18 per unit and fixed costs $10 per unit. carson has been offered a price of $20 per unit on a special order of 2,000 units by big mart discount stores, which would use its own brand name on the item. if carson accepts the order, material cost will be $3 less per unit than for regular production. however, special stamping equipment costing $4,000 would be needed to process the order; the equipment would then be discarded. assuming that volume remains within the relevant range, prepare an analysis of differential revenue and costs to determine whether carson should accept the special order. use a negative sign with answer to only indicate an income loss from special order; otherwise do not use negative signs with your answers.