CA S E 1 This is the first part of an ongoing case that will appear at the end of most sub- sequent chapters. It is recommended that you keep case solutions, notes, and other case information in a separate file or binder for quick reference. Charlie Driver has $35,000 saved and has decided to attend college, taking courses in marketing and retailing. To help pay his tuition and living expenses, he contracted with a mobile catering company as an independent driver. Char- lie will run his mobile catering business on a cash basis; he has named his busi- ness Charlie's Convenient Catering, or the 3C Company for short. He opened a company bank account with $35,000. He bought a used, fully equipped mo- bile catering truck for $29,000, and operated from January 4 to December 31, 2005. At the end of the year, Charlie had $28,110 in the bank and $208 ina cash drawer. Invoices show he purchased food, beverages, and supplies inven- tories for $48,222; ending inventory remaining on the truck was $280. His in- voices for truck operating expenses paid in cash total $3,288, and he has one unpaid truck repair invoice for $188. Charlie withdrew $2,400 a month fod per- sonal expenses. The truck has a five-year life and a residual value of $4,000, and straight-line depreciation is to be used. Charlie asks you to help him put together his business information and re- construct his cash sales. He recorded his daily cash sales in a notebook that can- not be found. Calculate 3C Company's sales revenue and prepare an accrual in come statement. Charlie is concerned that he has less cash now than he had when he started. Explain why