Algoma University - CESD 2996

Assignment #1

Due Date: July 12, 2021 (11:59pm)

*Please submit the assignment electronically to the folder location on the course site by the due date. Include your name and student number on the submission.

Case #1 - Support Local

"Support Local" is a non-profit organization that provides consulting and management advice with a mission to assist locally owned businesses grow and prosper. The organization operates with 3 employees and from rented premises. Support Local has completed one year of operation with the following balance sheet and income statement items:

Cash: $10,000

Account Receivables: $2,000

Supplies: $5,000

Long-term assets: $25,000

Equity/Retained earnings: (You are required to calculate)

Short term bank loan: $5,000

Trade creditors: $2,000

Long-term bank loan: $10,000

Accrued expenses: $3,000

For the first year; sales (fees charged for their services) was $150,000, operating expenses were $120,000 and there was $2,000 in bank interest and $5,000 in depreciation.

Support Local has received more applications than expected from locally owned businesses seeking