Q: in an Excel worksheet to income statement, a balance sheet and a statement
of changes in equity for a start-up business.
Scenario: You have started a valet parking business called First Class Valet. You have tracked your cash, supplies, revenues, expenses, and other items in a spreadsheet. The totals for each account at the end of your first month are as follows (ignore GST):
1. Sales Revenues, $400
2. Supplies on hand (asset account), $175
3. Cash, $300
4. Supplies expense, $225
5. Capital, 1 July 2019: $250
6. Salary payable, & Salary expense, $50.
7. Drawings: $20
8. Unearned revenue: $75
9. Accounts receivable: $5
a) In a new worksheet,
an income statement, a balance sheet, and a statement of changes in equity for 31 July 2019. Your statements should show the result of the following:
1. How well did your business do in its first month of operations? 2. How did this affect your capital account?
b) In a different worksheet draw a graph to visualise the financial performance of your company in an Excel spreadsheet.
Hint: Your graphs could visualise the following ratios:
1. Expense to sales ratio
2. profit margin ratio
c) provide a brief explanation about the financial performance of your company.