orn stand example of the build of an income statement and balance sheet We are starting a popcorn stand Here are the transactions 1. Start the business with $5,000 of your own cash and $5,000 loan from bank 2. Buy popcorn trailer and equipment for $4,000, pay in cash 3. Buy $2,000 of popcorn, toppings, napkins, bags. Pay with credit 4. Operate month one and sell $500 of popcorn. You figure your inventory usage was $250. You also gave all your customers 30 days to pay! 5. Taxes are 30% of EBT 6. Operate month 2 a. Pay $1,000 of his bills b. Buy $1,500 of radio advertising on credit c. Collect all of his month one receivables d. Sell $700 worth of popcorn using $350 of inventory e. Record Depreciation of $67 for the month f. Record Taxes