Accrual accounting - Accounting period of 1 week You start a cookie business and this is what you do in your first week (all of the below occurs during week 1): You invest $10 of your personal cash in your cookie business You get a $20 loan from the bank. You go to the grocery store to buy sugar, butter, vanilla, eggs, flour, baking soda, salt, nuts, and chocolate chips to make 100 cookies. These ingredients cost $20, which is charged to your account at the grocery store. You make a batch of 100 cookies. Your sister helps you and charges you $1 for labor (cash). You sell the 100 cookies at $0.50 each. You receive cash for 50 cookies ($25) and the other 50 cookies are purchased on account ($25). You repay $15 of the bank loan (cash). The banker wants $1 in interest (cash). The neighbors where you have your cookie stand ask you to buy an insurance policy. The insurance agent offers you a 3-week policy which costs $3 payable in advance in cash. Your insurance coverage starts this week. You purchase a cookie cart for $5 in cash. You depreciate the cookie cart $1/week including this week. A customer pays $6 for twelve cookies he bought on account. You pay $5 towards the account you have at the grocery store for the ingredients. Please fill out a balance sheet, income statement, and cash flow statement (50 points). Templates are provided below. CASH FLOW STATEMENT (SHOW ALL INDIVIDUAL CASH TRANSACTIONS) Put any investment you do in your own business under "beginning cash". In order to earn credit, please o Write out the origins of each box e g.. + $8 A/R. - $2 interest etc. O Explicitly mention sign (+ or -) OPERATING CASH FLOW COLLECTIONS INVENTORY PAID SGUA PAID INTEREST PAID TAXES PAID TOTAL OPERATING CASH FLOW INVESTING CASH FLOW FIXED ASSET INVESTMENTI ST DIVESTMENT OTHER. INVESTMENTS TOTAL INVESTING CASH FLOW -- FINANCING CASH FLOW PAID IN/PAID OUT (e.g. stock issued) DIVIDENDS BORROW/PAYBACK TOTAL FINANCING CASH FLOW BEGINNING CASH NET CHANGE IN CASH ENDING CASH INCOME STATEMENT (PROVIDE ANSWERS IN ALL WHITE BOXES) 1/ you do not name the expenses, you do not receive credit for them! Begin: Monday AM. End: Sunday PM INCOME STATEMENT SALES Beginning inventory + Purchases +Labor Total available for sale -Ending inventory -COST OF GOODS SOLD GROSS PROFIT = EXPENSES = TOTAL EXPENSES NET PROFIT M