Ethan Allen E-Glides Pro Forma Balance Sheet

Jason Shepard has decided to take the plunge! For the past several years, he has been restoring vintage motorcycles in his parents garage and built up not only a clientele of people interested in restoring motorcycles, but also a very significant side business in locating and selling parts and accessories for older motorcycles of all kinds, vintage and not so vintage. Jason has reduced his number of evenings bartending and beefed up his Web site to build on his local success.

His only problem is lack of working capital. He needs some now to get him started and then needs to put himself in a position to borrow more in the future. He knows that failure in the fulfillment aspect of an e-commerce business will surely kill the business. He has spoken to the bank and they have asked him for a balance sheet so they can better judge the financial condition of the new business and he has come to you for help!

His Uncle Pat has expressed an interest in becoming a partner and contributing not only money but time and expertise to the venture. He doesnt know much about the internet or business, but he has a wide spectrum of acquaintances all of whom share his and Jasons passion for motorcycles, especially the old ones! He has been great at sourcing parts and Jason is enthusiastic about his involvement.

Jason needs a balance sheet to show the contributions that both will have made to the business at start up. Jason has opened a business checking account in the name of Ethan Allen E-Glides with $500 he got from his grandmother. He has also made an inventory of the parts he has on hand and estimates that they are worth another $2,500. He has no motorcycles he is working on currently but he does have tools which he conservatively estimates at a value of $3,000. Jason has also run up a $300 bill at Staples for office equipment , printer cartridges etc. His Uncle Pat has agreed to contribute $5,000, a recent Dell desktop worth $650 and two vintage motorcycles which are not in working condition and which may or may not be worth anything for parts.

To help Jason and his Uncle Pat, set up a classified balance sheet for the combined partnership in a report format ( assets over liabilities) in a portrait style presentation. Make sure you find a way by using either columns or rows to show the balance sheet contributions of each, but only print and show the total combined balance sheet, since the partners contributions are confidential. For formatting use proper captions including the separation of current assets and liabilities from those of longer term