Speak one at a time without interrupting support your

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Speak one at a time without interrupting.Support your statements with facts and details.Finally, use the discussion and your notes to answer the questions.Section 1: Analyzing a Balance SheetOmar and Janet own a small jewelry-supply business called Rings and Things. From January throughApril, the company generated a fair amount of business. However, Janet and Omar’s owner equity islower than they had expected, and they seem to be losing money every month, even though sales aresteady. Below is April’s balance sheet for Rings and Things.AssetsCash (bills and coins)$35Bank checking account$1,997Materials (beads and wires)$40Finished jewelry$100Office supplies$50Furniture$100Total$2,322LiabilitiesBalance on loans$925Payroll$1,000(1 salesperson who works 20 hours/month)Total $1,925Assets – Liabilities = Owner Equity$2,322 total assets– $1,925 total liabilities=$407 owner equityBased on the balance sheet for April, offer two ways in which Janet and Omarcan increase their owner equity.Janet and Omar can invest more cash in their business to increase the owner equity.Review the liabilities section of the balance sheet for Rings and Things. Whatproblem can you identify with the payroll information, particularly as it relates to how much theone employee gets paid? What solution would you offer Janet and Omar?Section 2: Analyzing Cash FlowAfter reviewing their balance sheet, Omar and Janet create a profit-loss statement to see how muchmoney they are spending versus how much money their business is bringing in.

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Term
Winter
Professor
N/A
Tags
Balance Sheet, Omar, scenario planning

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