Balance sheet-

T1- Assets

Cash

Accounts

Receivable

Inventory

Current/short-term

Scooter Equipment

Goodwill - 1000

Total Long-Term

Total Assets

Liabilities

Payables

Current Liabilities

Loan Long-Term

Liabilities Total Liabilities

Revenue

Expenses

Retained Earnings

Owners Equity

Equity

Time 1 Investor puts $1,000 cash into business for 50% equity Buy $200 of inventory Sell $100 in coffee mugs (COGS is 25% of Revenue so $25 in inventory)

Time 2 Sell $100 in coffee mugs. Customer (Tim) will pay in 60 days Get bank loan for $750 Buy equipment for $300 will pay in 60 days

Time 3 Pay bill for equipment of $300 Receive $100 payment from Tim Buy $50 in inventory

Time 4 Buy $150 in advertising from Facebook Buy company scooter for $2,000. Paid $500 in cash and got a 2-year loan for $1,500 Paid $50 off of principle on scooter loan