It has been three years and Marions business is doing well. She wants to expand and offer coffee and specialty cakes. Construct a new balance sheet and profit and loss statement using the following information: The loan is currently at $20,000 and she is seeking an additional loan of $15,000 for equipment Cost of goods for muffins have increased 5% Selling price has remained the same for muffins. Selling and administrative expenses have increased 3% (rent and depreciation have remained the same) Selling price of cakes is $9.95 each and Marion estimates that she will sell 10 per week Cost of making the cakes is $6.85 each Selling price of coffee is $3.95 per cup (No free refills) Cost of producing the coffee is $.59 per cup. She estimates selling 50 cups per day. Due to the increase business she needs to hire an additional employee for a total of two. Each working 25 hours per week at $12.00 per hour.

Marion Muffin Shop Income Statement Sales Revenue $ 153,242 Operating Expenses: Cost of Goods Sold $ 83,704 Utilities Expense 10,800 Store Rent Expense 12,000 Internet and Communication Expense 3,600 Fuel and Oil Expense 1,020 Equipment Rent Expense 1,800 Salaries and Wages Expense 15,600 Interest Expense 1,800 Advertising Expense 3,600 Insurance Expense 2,475 Store License Expense 795 Repairs and Maintenance Expense 500 Depreciation Expense 2,500 Total Operating Expenses (140,194) Net Income $ 13,049 Marion's Magic Muffins Balance Sheet As of December 20XX Assets Current assets Cash-business account Cash - savings account Accounts Receivable 5.000 20,000 500 1,500 500 27,500 Inventory Prepaid Expense Total Current Assets Non Current Assets Store Equipment Delivery Vehicle Less: Accumulated Depreciation Total Non Current Assets Total Assets 11,500 22,000 15.000 18,500 46,000 Liabilities 1.200 Current Liabilities Accounts Payable Non Current Liabilities Loans Payable Total Liabilities 30,000 31,200 Owner's Equity Marion, Capital Total Liabilities and Owner's Equity 14,800 46,000