Elite Service Co. Week 1 Assignment - Running head ELITE...

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Running head: ELITE SERVICE CO. FINANCIAL ANALYSIS 1 Elite Service Co. Financial Analysis Serena Ramirez ACC/290 March 20, 2017 Jammie Janis
ELITE SERVICE CO. FINANCIAL ANALYSIS 2 Elite Service Co. Financial Analysis The financial statements for Elite Service Co. will show how the company did in the first month of business. The purpose of these financial statements is to identify, record and communicate the economic events for Elite Service Co. so that the company’s internal/ external users can make sound financial decisions that will benefit or improve the business’s status. Per the records on June 1, 2017, Elite Service Co. started with an initial investment of $22,100 in cash. As follows is a full breakdown of the company’s assets, liabilities, common stock, revenues and expenses for the entire month of June. In the first month of operation the company’s financials are as stated (University of Phoenix, 2017): Cash $ 4,600Notes payable $12,000 Accounts receivable 4,000Accounts payable 500 Service revenue 7,500Supplies expense 1,000 Supplies 2,400Maintenance and repairs expense 600 Advertising expense 400Utilities expense 300 Equipment 26,000Salaries and wages expense 1,400 Common stock 22,100 (University of Phoenix, 2017) In the financial statements provided the company’s net income was $3,800. The way to get this figure is by adding all the company’s expenses (Salaries and Wages Expense, Supplies Expense, Maintenance and Repairs Expense, Advertising Expense, and Utilities Expense) to get a total of $3,700. Once you get the total of expenditures, you subtract $3,700 from the sales

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