You run a small business that takes older machines and refurbishes them to sell at a charitable price. You are doing good for the environment and helping those who need these machines get one at a reasonable price when otherwise they would not have been able to afford one. yes, business is and can be about helping others, it is not all about making a profit and selling stuff to people that dont necessarily need stuff.

As the owner you have hired a few people to run the business. They look after purchasing and selling, collecting and distributing. You charge (sell the machines for) a small up-charge of 5% over cost to cover your operating costs.

Some pertinent financial data for 2022: beginning inventory $5,000, ending inventory $6,000, purchases for the year $61,000 and sales for the year $15,000.

Is there anything wrong with your business? Think through this scenario carefully considering some of the things we have learned in accounting.

address 2 or 3 issues and analysis of this scenario