Building Income statement and balance sheet along with Cash flow

On January 1, 2021 you buy a patent for $21k and you estimate the patent has a useful life of 7 years, after which it will have no value. The patent is used directly in the lemonade making process.

During 2021, you sold $270k in lemonade at $1.20 per cup. You have still not collected $30k of this by year end.

On January 1, 2021, you buy $50k worth of lemons and paper cups (just enough to make 200k cups of lemonade)with cash. On December 15, 2021, you buy an additional $25k (enough to make 50k cups) but you didn’t pay cash yet -the invoice is due January 5, 2022. Assume FIFO accounting.

You kept your lemonade mixer and cashier from last year, and paid them each $15k for the year 2021. You had to hire an additional lemonade mixer and cashier for 2021 and paid them $15k each. You also awarded (but did not pay) your original mixer and cashier a $3k bonus each for their work in 2021.

You started the year with 9,000 shares outstanding. On June 30, 2021 you repurchased 2,000 shares from an investor for $80k.

Your depreciation expense for the year is $25,000 (all under COGS).

You value your (internally generated) trademark at $10k (up from $7k last year).

Interest expense was $6k; interest income was $2k. On 7/15/2021, you issued(and paid) a $3/share dividend. Tax rate is 21%.

During 2021, you sold $270k in lemonade at $1.20 per cup. You have still not collected $30k of this by y
Your depreciation expense for the year is $25,000 (all under COGS).
You value your (internally generated) trademark at $10k (up from $7k last year).
Given the following transactions occurring during the 2021 calendar year. Complete an Income
statement (including EPS and EBITDA calculations) for the period 1/1/2021-12/31/2021 as well as an
updated Balance Sheet as of 12/31/2021. You will find the 12/31/2020 Balance sheet as well as a
template on the sheet “IS_BS”. Lastly on the worksheet labeled “CFS” please fill in the missing
accounts on the cash flow statement, which are highlighted yellow. (paying special attention to the
proper sign, i.e., is the cash flow positive or negative)
Show your work for partial credit
During 2021, you sold $270k in lemonade at $1.20 per cup. You have still not collected $30k of this by year end.
On January 1, 2021 you buy a patent for $21k and you estimate the patent has a useful life of 7 years,
after which it will have no value. The patent is used directly in the lemonade making process.
On January 1, 2021, you buy $50k worth of lemons and paper cups (just enough to make 200k cups of
lemonade)with cash. On December 15, 2021, you buy an additional $25k (enough to make 50k cups)
but you didn’t pay cash yet -the invoice is due January 5, 2022. Assume FIFO accounting.
You kept your lemonade mixer and cashier from last year, and paid them each $15k for the year 2021.
You had to hire an additional lemonade mixer and cashier for 2021 and paid them $15k each. You also
awarded (but did not pay) your original mixer and cashier a $3k bonus each for their work in 2021.
You started the year with 9,000 shares outstanding. On June 30, 2021 you repurchased 2,000 shares
Your depreciation expense for the year is $25,000 (all under COGS).
You value your (internally generated) trademark at $10k (up from $7k last year).
Interest expense was $6k; interest income was $2k. On 7/15/2021, you issued(and paid) a $3/share
of this by year end.
Balance Sheet for Scott’s Tots Lemonade
Stand 12/31/2021
12/31/2020 12/31/2021
Assets
Cash
$ 184,964
A/R
0
Inventory
0
PP&E
82,500
Intangibles
0
Total Assets
$ 267,464
Liabilities
A/P
Accrued Expenses
Long-term Debt
Total Liabilities
Equity
Common Stock
Treasury Stock
Retained Earnings
Total Equity
$
–
0
87,500
$ 87,500
$
–
$ 145,000
0
34,964
$ 179,964
$
–
Cash from operating
Capex
Asset Sales
Intangible assets purchased
Total
Cash from financing
Debt Issuance
Debt paydown
Stock Issuance
Stock repurchase
Dividends paid
Total
Change in cash
Cash at end
0
0
0
0
(21,000)
During 2021, you sold $270k in lemonade at $1.20 per cup. You have still not collected $30k of this by y
Your depreciation expense for the year is $25,000 (all under COGS).
You value your (internally generated) trademark at $10k (up from $7k last year).
Given the following transactions occurring during the 2021 calendar year. Complete an Income
statement (including EPS and EBITDA calculations) for the period 1/1/2021-12/31/2021 as well as an
updated Balance Sheet as of 12/31/2021. You will find the 12/31/2020 Balance sheet as well as a
template on the sheet “IS_BS”. Lastly on the worksheet labeled “CFS” please fill in the missing
accounts on the cash flow statement, which are highlighted yellow. (paying special attention to the
proper sign, i.e., is the cash flow positive or negative)
Show your work for partial credit
During 2021, you sold $270k in lemonade at $1.20 per cup. You have still not collected $30k of this by year end.
On January 1, 2021 you buy a patent for $21k and you estimate the patent has a useful life of 7 years,
after which it will have no value. The patent is used directly in the lemonade making process.
On January 1, 2021, you buy $50k worth of lemons and paper cups (just enough to make 200k cups of
lemonade)with cash. On December 15, 2021, you buy an additional $25k (enough to make 50k cups)
but you didn’t pay cash yet -the invoice is due January 5, 2022. Assume FIFO accounting.
You kept your lemonade mixer and cashier from last year, and paid them each $15k for the year 2021.
You had to hire an additional lemonade mixer and cashier for 2021 and paid them $15k each. You also
awarded (but did not pay) your original mixer and cashier a $3k bonus each for their work in 2021.
You started the year with 9,000 shares outstanding. On June 30, 2021 you repurchased 2,000 shares
Your depreciation expense for the year is $25,000 (all under COGS).
You value your (internally generated) trademark at $10k (up from $7k last year).
Interest expense was $6k; interest income was $2k. On 7/15/2021, you issued(and paid) a $3/share
of this by year end.
Balance Sheet for Scott’s Tots Lemonade
Stand 12/31/2021
12/31/2020 12/31/2021
Assets
Cash
$ 184,964
A/R
0
Inventory
0
PP&E
82,500
Intangibles
0
Total Assets
$ 267,464
Liabilities
A/P
Accrued Expenses
Long-term Debt
Total Liabilities
Equity
Common Stock
Treasury Stock
Retained Earnings
Total Equity
$
–
0
87,500
$ 87,500
$
–
$ 145,000
0
34,964
$ 179,964
$
–
Cash from operating
Capex
Asset Sales
Intangible assets purchased
Total
Cash from financing
Debt Issuance
Debt paydown
Stock Issuance
Stock repurchase
Dividends paid
Total
Change in cash
Cash at end
0
0
0
0
(21,000)
During 2021, you sold $270k in lemonade at $1.20 per cup. You have still not collected $30k of this by y
Your depreciation expense for the year is $25,000 (all under COGS).
You value your (internally generated) trademark at $10k (up from $7k last year).
Given the following transactions occurring during the 2021 calendar year. Complete an Income
statement (including EPS and EBITDA calculations) for the period 1/1/2021-12/31/2021 as well as an
updated Balance Sheet as of 12/31/2021. You will find the 12/31/2020 Balance sheet as well as a
template on the sheet “IS_BS”. Lastly on the worksheet labeled “CFS” please fill in the missing
accounts on the cash flow statement, which are highlighted yellow. (paying special attention to the
proper sign, i.e., is the cash flow positive or negative)
Show your work for partial credit
During 2021, you sold $270k in lemonade at $1.20 per cup. You have still not collected $30k of this by year end.
On January 1, 2021 you buy a patent for $21k and you estimate the patent has a useful life of 7 years,
after which it will have no value. The patent is used directly in the lemonade making process.
On January 1, 2021, you buy $50k worth of lemons and paper cups (just enough to make 200k cups of
lemonade)with cash. On December 15, 2021, you buy an additional $25k (enough to make 50k cups)
but you didn’t pay cash yet -the invoice is due January 5, 2022. Assume FIFO accounting.
You kept your lemonade mixer and cashier from last year, and paid them each $15k for the year 2021.
You had to hire an additional lemonade mixer and cashier for 2021 and paid them $15k each. You also
awarded (but did not pay) your original mixer and cashier a $3k bonus each for their work in 2021.
You started the year with 9,000 shares outstanding. On June 30, 2021 you repurchased 2,000 shares
Your depreciation expense for the year is $25,000 (all under COGS).
You value your (internally generated) trademark at $10k (up from $7k last year).
Interest expense was $6k; interest income was $2k. On 7/15/2021, you issued(and paid) a $3/share
of this by year end.
Balance Sheet for Scott’s Tots Lemonade
Stand 12/31/2021
12/31/2020 12/31/2021
Assets
Cash
$ 184,964
A/R
0
Inventory
0
PP&E
82,500
Intangibles
0
Total Assets
$ 267,464
Liabilities
A/P
Accrued Expenses
Long-term Debt
Total Liabilities
Equity
Common Stock
Treasury Stock
Retained Earnings
Total Equity
$
–
0
87,500
$ 87,500
$
–
$ 145,000
0
34,964
$ 179,964
$
–
Cash from operating
Capex
Asset Sales
Intangible assets purchased
Total
Cash from financing
Debt Issuance
Debt paydown
Stock Issuance
Stock repurchase
Dividends paid
Total
Change in cash
Cash at end
0
0
0
0
(21,000)
During 2021, you sold $270k in lemonade at $1.20 per cup. You have still not collected $30k of this by y
Your depreciation expense for the year is $25,000 (all under COGS).
You value your (internally generated) trademark at $10k (up from $7k last year).
Given the following transactions occurring during the 2021 calendar year. Complete an Income
statement (including EPS and EBITDA calculations) for the period 1/1/2021-12/31/2021 as well as an
updated Balance Sheet as of 12/31/2021. You will find the 12/31/2020 Balance sheet as well as a
template on the sheet “IS_BS”. Lastly on the worksheet labeled “CFS” please fill in the missing
accounts on the cash flow statement, which are highlighted yellow. (paying special attention to the
proper sign, i.e., is the cash flow positive or negative)
Show your work for partial credit
During 2021, you sold $270k in lemonade at $1.20 per cup. You have still not collected $30k of this by year end.
On January 1, 2021 you buy a patent for $21k and you estimate the patent has a useful life of 7 years,
after which it will have no value. The patent is used directly in the lemonade making process.
On January 1, 2021, you buy $50k worth of lemons and paper cups (just enough to make 200k cups of
lemonade)with cash. On December 15, 2021, you buy an additional $25k (enough to make 50k cups)
but you didn’t pay cash yet -the invoice is due January 5, 2022. Assume FIFO accounting.
You kept your lemonade mixer and cashier from last year, and paid them each $15k for the year 2021.
You had to hire an additional lemonade mixer and cashier for 2021 and paid them $15k each. You also
awarded (but did not pay) your original mixer and cashier a $3k bonus each for their work in 2021.
You started the year with 9,000 shares outstanding. On June 30, 2021 you repurchased 2,000 shares
Your depreciation expense for the year is $25,000 (all under COGS).
You value your (internally generated) trademark at $10k (up from $7k last year).
Interest expense was $6k; interest income was $2k. On 7/15/2021, you issued(and paid) a $3/share
of this by year end.
Balance Sheet for Scott’s Tots Lemonade
Stand 12/31/2021
12/31/2020 12/31/2021
Assets
Cash
$ 184,964
A/R
0
Inventory
0
PP&E
82,500
Intangibles
0
Total Assets
$ 267,464
Liabilities
A/P
Accrued Expenses
Long-term Debt
Total Liabilities
Equity
Common Stock
Treasury Stock
Retained Earnings
Total Equity
$
–
0
87,500
$ 87,500
$
–
$ 145,000
0
34,964
$ 179,964
$
–
Cash from operating
Capex
Asset Sales
Intangible assets purchased
Total
Cash from financing
Debt Issuance
Debt paydown
Stock Issuance
Stock repurchase
Dividends paid
Total
Change in cash
Cash at end
0
0
0
0
(21,000)