Lemonade Accounting

Lemonade Accounting - According to the statement of owners...

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According to the balance sheet for the Lemonade Stand, the total of assets and total equity & liabilities are the same which suggest that the amount of money taken in carried the amount of money going without a profit or loss. According to the income statement, the stand was able to make a profit because the stand took in $185.90 and paid out $59.95 with a profit of $125.95.
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Unformatted text preview: According to the statement of owners equity, the owner made a profit of $125.95 because the owner originally invested $40 and by the end of the day, the capital totaled $165.95. Overall the statement of cash flows shows that the owner started out with an investment of $40 and by the end of the day the owners revenue totaled $185.95 with a net profit of $145.95....
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