The Background: In the upcoming summer, thirteen-year-old Juliette wanted to make some cash the old-fashioned way: by getting someone else to earn it for her. Who better than her two younger brothers Victor and Sam? After all, they were eager and would work for chocolate. Who knows, maybe her parents would even pay to get rid of them engage the boys in some intellectual activity... Planning for Lemonade Season: Juliette decided to withdraw $300 from her savings account to start two lemonade stands, one each for Victor and Sam. She spent $60 each on two used tables, which had about six seasons remaining. She bought packages of cups and lemonade mix. Juliette also spared no expense to secure two high-quality glass pitchers at a cost of $42 total. The pitchers should last three seasons, or at least that's what the ad said. She skipped buying chairs figuring the boys could stand for a good two hours without complaint or permanent back problems. She also figured she would have to pay them $2 each day they decided to work (yes, violating every child labor law in existence, but she was only 13 and unlikely to see hard jail time). Since each stand would be within walking distance of their home, they could get ice from the freezer as needed, and retrieve water from the garden hose out front. Victor's Set-Up: She set Victor's lemonade stand up first and provided him with 100 plastic cups (cost of $5 total) and four pounds of lemonade mix (cost of $20 total), and she gave him a table and a pitcher. He also got $10 in cash to use for change. Walking away, she was confident that her $116 investment would pay off. As soon as Juliette rounded the corner, Victor called for their mommy and asked to borrow $7 to buy a big umbrella to shelter his delicate skin from the harmful UV rays. Victor is now officially ready for Lemonade Season. Sam's Set-Up: Juliette next turned her sights to Sam's lemonade stand, which would be around the corner. Since he was younger, she only provided him with 50 plastic cups (costing $3 total), and two pounds of lemonade (cost of $10 total). She provided him with his table and glass pitcher. She then gave him only $2 to use for change because she didn't trust him with the cash. She was glad she'd only got $96 invested into Sam's lemonade stand as she didn't think he was going to work very hard. On the other hand, she figured people might buy more junk from younger kids, so who knows? Sam proceeded to watch his big sister head into the house, stirred up the first pitcher of lemonade, made a big CONTRIBUTIONS WELCOME sign, then headed over to his buddy's house to play. Of course he poured a couple of cups for the road after all, they might get thirsty. Juliette hid the remaining money under her mattress just in case it was needed for a good reason in the first couple weeks of the season, then put on her bathing suit. As she headed to the beach with her friends, Juliette couldn't help but wonder if she should have left her hard-earned money in the bank, earning 5% interest guaranteed. Sam's Season: The first week of the summer, Juliette got worried that she had too much money tied up into her younger brother's stand. So she borrowed $50 from their dad and said she'd pay him back at the end of the summer, plus an additional $5 of interest. Sam said that he had worked a total of 15 days and already taken the $30 that he said he had earned. He claimed to have sold 45 "or so cups of lemonade, and there was a total of $117 cash on hand at season's end, crumpled up in a can Sam handed to her. Sam swore that he had sold $153 worth of lemonade, and he also remembered selling lemonade to a group of five kids who said they'd drop by at some point to pay up. He had no idea who they were but thought two of them looked familiar. There were no cups left, no lemonade mix was in sight, and the pitcher was broken. Juliette took $8 from Sam's stand during the season to buy some pizza for herself and her friends. There was a note from a neighbor indicating that Sam took some lemonade mix when he supposedly ran out and still owed $4. The table looked pretty rough and Juliette figured that it only had two years of life left on it. Juliette talked to Sam about pink slips, reductions in staff, and layoffs, and she blamed it all on some sort of banking crisis permeating the Eurozone. Juliette's Lemonade Stand - Sam Balance Sheet Pre-season (U.S. $) ASSETS Current Assets Cash Inventory Total Current Assets $2.00 13.00 $15.00 Fixed Assets Table Pitcher Total Fixed Assets Total Assets 60.00 21.00 $81.00 $96.00 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities None $0.00 Total Current Liabilities $0.00 Shareholders' Equity Common Stock & Paid-In Capital Total Shareholders' Equity 96.00 96.00 Total Liabilities and Shareholders' Equity $96.00 Juliette's Lemonade Stand - Sam Income Statement 15 day period ended XXX (U.S. $) Revenues Gross Sales Net Sales $ Cost of Goods Sold Beginning Inventory Add: Net purchases Cost of Goods Available for Sale 0.00 Less: Ending Inventory Total Cost of Goods Sold 0.00 Gross Profit $ Operating Expenses Salaries Expense Depreciation Expense - pitcher Depreciation Expense - table Interest Expense Total Operating Expenses 0.00 Net Operating Profit $ Juliette's Lemonade Stand - Sam Balance Sheet Post-season (U.S. $) ASSETS Total Assets $0.00 LIABILITIES AND SHAREHOLDERS' EQUITY Total Liabilities and Shareholders' Equity $0.00