Exercise $-$ Let$$s start a business $$ A Latte Cart Get business license, open a bank account for $$50,000,$ source of money $=$ $$10,000$ savings, $$40,000$ loan from Grandparents, payable in $5$ years, no interest. Buy $$500$ of inventory, ON CREDIT Buy an industrial strength coffee grinder, $$2,500,$ FOR CASH, useful life $3$ years. Arrange to rent a cart $-$ $$3,000/$month$,$ open $20$ days$/$mo$,$ payable at the end of the month Arrange to rent space $-$ $$2,000/$month$,$ open $20$ days$/$mo$.,$ payable at the end of the month Hire an employee$--$$$8/$hour$,10$ hours$/$day Selling Price $=$ $$1\mathrm{.}50$ each. Calculate Sales: $$1\mathrm{.}50$ x quantity sold Calculate Cost of Sales $($Variable costs, change with Sales Volume$)$: Materials: $24$cent $/$ cup, Cost of sales: $24$ cent $*$quantity sold

COMPLETE THE BALANCE SHEET BELOW FOR THIS BUSINESS!

Complete Column $1,$ after opening Bank Account, before purchasing anything Complete Column $2,$ after purchasing basic items, before making any sales and before taking possession of cart and space.

ESPRESSO ELENA

BALANCE SHEET $($prepare $2)$

As of $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_($date$)$

Assets Column $1.$ After opening Bank Account, before purchasing anything Column $2.$ After purchasing basic items, before making any sales

current assets

fixed assets

total assets

liabilities

current liabilities

long term liabilities

total liabilities

stockholders equity

total liabilities and stockholders equity