PERRY$$S COFFEE SHOP

SCENARIO:$$ Ms$.$ Penny Perry opened a new Coffee Shop in Barre, Vermont.$$ To start her Grandmother Barnum gave her $100,000$ USD, and Perry borrowed $50,000$ USD from Pioneer Bank, a loan that Grandma Barnum cosigned for Perry.$$ Perry purchased $75,000$ USD of New Coffee Shop Equipment $($roaster$,$ grinders, sinks$,$ coolers, counters, shelves & cabinets, tables & chairs, and miscellaneous items$).$ She paid contractors $10,000$ USD to install the equipment, and refurbish the shop. She purchased $5,000$ USD of supplies, paid $5,000$ USD to the building owner, $2,500$ USD for the first month$$s rent and, a $2,500$ USD deposit. She hired four friends part time to work in the shop with her, but won$$t pay them till they finish their first week of work.

Her Grandmother told her that if she did well with the shop, she could open a second shop nearby in Montpelier. To see how she might do over the course of the first year of operations, July $1$st $2023$ to June $30$th $2024,$ Perry projected her first year$$s Income Statement for PPB$.$ She used the following projections as a basis for her Income Statement:$$ She expects to sell $15,000$ USD of coffee and miscellaneous items per month.$$ Based on price sheets from suppliers, she expects to pay $3,500$ USD a month for supplies $($coffee$,$ pastries, cups, and miscellaneous items$).$ She will pay each of her four employees, and herself a total employment cost $($includes wage based taxes etc.$)$ of $1,000$ USD per month apiece. Perry has to pay Pioneer Bank $1,000$ USD per month.$$ Perry also expects, $1,000$ USD a month of additional miscellaneous expenses $($electric & water utilities, snow removal, insurances, minor equipment additions and repair, advertising, etc.$).$ Her accountant told her to Depreciate her equipment over $15$ years, and that she will pay taxes personally as an S Corporation, so there will be NO TAXES DEDUCTED from PPB$$s P&L$.$ What might her Initial Balance Sheet look like? What might her Income Statement look like on June $30$th $2023$ after PPB$$s first year of operation? What might her Balance Sheet look like on June $30$th $2022$ after one year of operation?

Notes: Barnum Coffee$$s performance for the first year, that is the transactions and activities from a year$$s operation, are reflected in the JUNE $30$TH$,2024$ BALANCE SHEET.

The primary objectives of the exercise are to gain experience with the $$Account Names$$ and to utilize $$EXCEL$$ for Managerial Accounting and related analysis, so including names for the accounts listed above is first, however, adding additional accounts from your research $($text$/$online sources$)$ may be helpful too, and making use of Excel$$s formatting, formulas, and reference cell locations is an important objective.

For the Financial Statements, one should use formulas that INCLUDE: SUB$-$TOTALS for: Current Assets, Current Liabilities, Long Term Assets, Long Term Liabilities, Total Assets, Total Liabilities, Total Equity, Gross Margin, and Net Margin,