March $1,2010.$ The firm then wrote a check for $$525,000$ to buy the $65$ acres of land that included Verona Springs.

The water was nearly free of pollutants, but it arose into a small pond before flowing to a nearby stream.

In the pond, the water was exposed to falling leaves and other contaminants. To maintain purity, Mr$.$

cash for the drilling on March $10,2009.$ Mr$.$ Pickering expected the well to last at least $10$ years before re$-$drilling would be needed.

gallon plastic water bottles and lids for $$3,200,$ and $3,100$ shipping boxes for $$3,100($ $$1\mathrm{.}00$ per box$).$

The $$6,300$ for those purchases was payable in $30$ days. During April, the firm also purchased miscellaneous supplies for $$500$ and paid in cash.

inventory.

Required

For the two$-$month period March $1,2009,$ to April $30,2009,$ prepare $($a$)$ journal entries, $($b$)$ an income statement, $($c$)$ a balance sheet, and $($d$)$ a statement of cash flows.

Evaluate the company's performance.

Is the large decline in cash a concern?

how would the three financial statements change if Verona springs bought $5,100$ boxes for $$5,100($ $$1\mathrm{.}00$ per box$)$ and if $2,000$ boxes remained in inventory?

assume negligible quantities of boxes, bottles, lids, and supplies in inventory.

Identify costs that may not have been included in the case.