You decide to set up a small business - a lemonade stand. In order to start the venture, you need to make certain capital acquisitions. However, being deep in debt to OSAP, you have NO capital of your own. Fortunately, you are able to persuade your Mom to give you $20 to finance your start-up. Although you will run the business as a sole proprietor, you promise that you will give your Mom 50% of all of the business' after-tax profit. To get the business up and running, you first go to the Dollar Store. You spend $10 of the money that your Mom gave you. You buy some big pieces of cardboard, some green and orange felt pens, and several rolls of scotch tape. You use up all of these supplies to make a big sign that says "Delicious Home Made Lemonade!". Then you go to Home Depot where you spend $10 to buy a great big jug. You need a table and a chair, and a wooden spoon, but you borrow those, for free, from your Mom. In addition, your Mom says you can get your water, free, from the kitchen tap in your house. The next day, you go to the supermarket and you buy the following: o plastic disposable glasses - These cost you 10 for $1.00 o lemons - These cost 25 cents each. You will use 1 lemon in each glass of lemonade. o sugar cubes - you buy a package, and you calculate that each cube costs 5 cents. You will put 3 cubes into each glass of lemonade that you make. You decide to sell each glass of delicious home-made lemonade at a price that includes a 100% mark-up over your variable costs. In your business planning, you are careful to open your business on the first day of summer, June 21. Thanks to global warming, you are able to sell 20 glasses of lemonade per day. Calculate your break even quantity; and Indicate the number of days until the business breaks even Lemonade Stand (part 2) At the very end of Day 10, just as you are closing the lemonade stand for the night, your dog "Fluffy" accidentally bumps into the table. The great big jug falls onto the sidewalk and breaks into a thousand pieces. Thus, the only piece of capital equipment that the business purchased is 100% depreciated. Without a jug in which to make the lemonade, you decide to close the business, and start taking piano lessons instead. You were kinda bored anyway. Because you are a full time student, and the lemonade stand was your only source of taxable income, it is assumed that you are below the CRA's "basic personal amount". So, your tax rate is 0%. Prepare a complete income statement for the lemonade stand, in correct format. You decide to set up a small business - a lemonade stand. In order to start the venture, you need to make certain capital acquisitions. However, being deep in debt to OSAP, you have NO capital of your own. Fortunately, you are able to persuade your Mom to give you $20 to finance your start-up. Although you will run the business as a sole proprietor, you promise that you will give your Mom 50% of all of the business' after-tax profit. To get the business up and running, you first go to the Dollar Store. You spend $10 of the money that your Mom gave you. You buy some big pieces of cardboard, some green and orange felt pens, and several rolls of scotch tape. You use up all of these supplies to make a big sign that says "Delicious Home Made Lemonade!". Then you go to Home Depot where you spend $10 to buy a great big jug. You need a table and a chair, and a wooden spoon, but you borrow those, for free, from your Mom. In addition, your Mom says you can get your water, free, from the kitchen tap in your house. The next day, you go to the supermarket and you buy the following: o plastic disposable glasses - These cost you 10 for $1.00 o lemons - These cost 25 cents each. You will use 1 lemon in each glass of lemonade. o sugar cubes - you buy a package, and you calculate that each cube costs 5 cents. You will put 3 cubes into each glass of lemonade that you make. You decide to sell each glass of delicious home-made lemonade at a price that includes a 100% mark-up over your variable costs. In your business planning, you are careful to open your business on the first day of summer, June 21. Thanks to global warming, you are able to sell 20 glasses of lemonade per day. Calculate your break even quantity; and Indicate the number of days until the business breaks even Lemonade Stand (part 2) At the very end of Day 10, just as you are closing the lemonade stand for the night, your dog "Fluffy" accidentally bumps into the table. The great big jug falls onto the sidewalk and breaks into a thousand pieces. Thus, the only piece of capital equipment that the business purchased is 100% depreciated. Without a jug in which to make the lemonade, you decide to close the business, and start taking piano lessons instead. You were kinda bored anyway. Because you are a full time student, and the lemonade stand was your only source of taxable income, it is assumed that you are below the CRA's "basic personal amount". So, your tax rate is 0%. Prepare a complete income statement for the lemonade stand, in correct format