Question
You decided to start up 3-D Printing Prototyping business. In October of 2020, you: Invest $10,000 of your own money . Raise an additional $20,000
You decided to start up 3-D Printing Prototyping business. In October of 2020, you:
Invest $10,000 of your own money
. Raise an additional $20,000 from family and friends (as equity). You also borrow another $10,000 from them that you agree to pay back in 6-months time
. Secure operating space and prepay for 3-months of space at $3,000 a month. Your landlord let you in a couple days early to set up before your grand opening at no additional cost.
Purchase 3-D printers totalling $20,000.
Purchase computers and related equipment totalling $12,000
Purchase $4,000 worth of 3-D printing supplies (printer filament)
Your grand opening is set for Nov 1. Complete the balance sheet for this company as of Nov 1.
Over the next 3-months you:
Complete prototyping work worth $30,000. This work required $8,000 of your printing supplies. During this time you also purchased another $10,000 worth of printing supplies.
You also receive payment for a $2,000 job that will completed over the first month of the next quarter.
You didnt pay any additional rent given that you prepaid it in October
. Utilities (electricity, water, etc) were 20% of your rent.
You hired an assistant for the last two months, paying them $2,000 a month.
Marketing costs were $3,000.
You also paid $500 in interest on your loan and paid back $2,000 in principal (earlier than expected)
. Taxes are expected to be 20% of your income.
You can ignore depreciation.
Complete an income statement for those first three months.
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