Prepare an income statement, balance sheet and cash-flow statement for below case for six months from 1 January to 30 June:

Ruby's Book Store:

1.On day one Ruby y contributed $20,000 and borrowed $10,000 from a friend.She doesn't need to repay her friend for 3 years, but she do need to pay $100 per month in interest at the end of each month. She has made five payments so far and will make the sixth payment halfway through July.

2. The major setup cost was to have a website developed, an online store. She engaged

developers a few days after she took out the loan.They delivered the

completed website at the beginning of month 3, and she paid them $15,000 at that

time.She expects to use it for around three years before any new

development. She pay $200 per month in web support costs... started in month 3

3. Her

sales have been quite good, she received $13,248 in pay now sales - where

customers pay immediately by credit card.These customers all received an

8% discount off the normal price for selecting pay now. She made pay later

sales of $24,000 - that's the invoiced amount.With pay later sales, the

customer doesn't need to pay until she ships the goods and the website

automatically dispatches an invoice when it happens.The total cash

received from customers since she started up is $32,750.

4. During

month 3 she realised she couldn't cope with the customer enquiries, so she hired

some help starting at the beginning of month 4 and paid $750 at the end of each

month to a customer support employee based in the Philippines. Their service is

amazing.Just recently they changed their payment terms and now she doesn't

need to pay them until 2 weeks after the end of the month.So right now, she

owes them $750 for month 6.

5. She also

paid $800 per month for online advertising commencing in month 5 which she paid

in the middle of months 5 and 6

6. She placed

orders for 150 units at $60, of those she returned 20 units because the colour

was wrong. She got a credit for the return. She then ordered another 200 units

at $65 dollars.Around month five she did a mini stocktake and discovered

she had 15 units on hand. She should have had 20 units on hand, no idea what

happened to the missing 5. She ordered a further 100 units at $70, and of those

she still have 40 units, and that is the correct quantity.The total

amount she paid to the supplier was $22,000

7. She did

take out $3,000 cash in month 5 to pay for a short-break, nothing to do with

the business."