Goal: Create an Excel worksheet to prepare an income statement, a balance sheet and a statement of changes in equity for a start-up business.

Scenario: You have started a valet parking business called First Class Valet. You have tracked your cash, supplies, revenues, expenses, and other items in a spreadsheet. The totals for each account at the end of your first month are as follows (ignore GST):

1. Sales Revenues, $400

2. Supplies on hand (asset account), $175

3. Cash, $300

4. Supplies expense, $225

5. Capital, 1 July 2019: $250

6. Salary payable, & Salary expense, $50.

7. Drawings: $20

8. Unearned revenue: $75

9. Accounts receivable: $5

Required

a) In a new worksheet, prepare an income statement, a balance sheet, and a statement of changes in equity for 31 July 2019. Your statements should show the result of the following:

1. How well did your business do in its first month of operations? 2. How did this affect your capital account?

b) In a different worksheet draw a graph to visualise the financial performance of your company in an Excel spreadsheet.

Hint: Your graphs could visualise the following ratios: 1. Expense to sales ratio 2. profit margin ratio c) provide a brief explanation about the financial performance of your company.