Chapter 1 Handout BILL'S CUSTOM SHOE STORE Bill Taylor worked in a major retail shoe store for over 5 years while freelancing as a textile artist. While working for the shoe company, he noticed a trend of customers coming in seeking larger, wider, or other varieties of shoes than what his employer offered. On January 1, 2017, he decided he could meet the needs of many of these customers, so he decided to open up Bill's Custom Shoe Store. His store offers hard to find sizes to their customers. In addition, they hand paint art to all of their shoes according to customer specifications. In the first year of operations, Bill paid for the following items: Advertising 8,500 Textiles Paint Other supplies Wages (for 1 intern) Rent Insurance (three-year policy) Utilities Miscellaneous expenses $60,000 6,000 3,000 12,000 12,000 3,000 4,500 1,500 Bill also purchased machinery for $20,000; He expects the machinery to be orthless after 5 years. Bill's utility bills for December 2017 have not arrived yet, but are expected to be $400. For 2012, Bill earned sales totaling $150,000 but only collected $130,000. In addition, Bill has unused paint, other supplies and textile totaling $1,000, $500 and $15,000, respectively How much profit did Bill earn during his first year of business? Should he have kept his position at the shoe store making $40,000 a year