Question

Jane decided to embark on a business venture. She finds that the artworks of native Sabahans unique and she decided to buy some from a local supplier and sell them in Singapore. She began with an initial cash amount of $$1.500 On wwek 1 of her business venture she bought artworks worth a total of $1,400 at which she sold a quarter of them for $$550 She received Co t s from many of her would-be customers that the price she charged was too high. With this in mind. Jane decided to lower the price of the artworks. On the second week, she lowered the price and sold 23 of the remaining artworks for a total of S$900. Encouraged, Jane then decided to try and her reach to potential customers-she decided to offer delivery services On week 3. she purchased an LTA-compliant e-scooter for S$399 with S$200 borrowed. interest-free, from her parent, which she promises to repay in 2 weeks She also bought more artworks from the supplier at an amount of S$700. Jane sold all her artworks for a total of S$1,500. She also spent $100 in electricity costs for charging the e-scooter. On week 4, she decided that she no longer needed the e-scooter and sold it on the same day for a price of $200

Does the income statements and balance sheet have to be in a weekly format or a normal format?

Please answer with Microsoft Excel.

Answer 1

Answer : The income statement & Balance Sheet on weekly basis will be helpful to understand each week's performance and different business strategy which is presented as below :

Jane
Income Statement for Week-1
Sales	550
Cost of Artwork (1400*25%)	-350
Net Income from W-1	200
Income Statement for Week-2
Sales	900
Cost of Artwork (1400-350)*2/3	-700
Net Income from W-2	200
Income Statement for Week-3
Sales	1500
Cost of Artwork (1400-350-700+700)	-1050
Scooter running expenses	-100
Net Income from W-3	350
Income Statement for Week-4
Loss on sale of Scooter	-199
Net Loss from W-4	-199

Jane
Balance sheet at end of Week-1
Assets
Cash (1500+550-1400)	650
Inventory (1400-350)	1,050
Total Assets	1,700
Equity Capital	1,500
Retained Earning	200
Total Liabilities	1,700
Balance sheet at end of Week-2
Assets
Cash (650+900)	1,550
Inventory(1050-700)	350
Total Assets	1,900
Equity Capital	1,500
Retained Earning	400
Total Liabilities	1,900
Balance sheet at end of Week-3
Assets
Scooter	399
Cash (1550+1500-700+200-100-399)	2,051
Inventory	-
Total Assets	2,450
Interest free loan from Parent	200
Equity Capital	1,500
Retained Earning	750
Total Liabilities	2,450
Balance sheet at end of Week-4
Assets
Scooter	-
Cash (20151+200)	2,251
Inventory	-
Total Assets	2,251
Interest free loan from Parent	200
Equity Capital	1,500
Retained Earning	551
Total Liabilities	2,251