(1) Income statement of Lily's Green Thumb | ||||
From 01stJan. 2002 to 31st March 2002 | ||||
Particulars | Amount | Particulars | Amount | |
To Opening Stock | $ - | By Sales | $ 75,000.00 | |
To Purchase | $ 60,000.00 | By Closing Stock | $ 1,600.00 | |
To Gross Profit | $ 16,600.00 | |||
Total | $ 76,600.00 | Total | $ 76,600.00 | |
To Salary | $ 6,000.00 | By Gross Profit | $ 16,600.00 | |
To Rent | $ 1,500.00 | |||
To Repair | $ 800.00 | |||
To Dividend | $ 2,000.00 | |||
To Depreciation | $ 1,000.00 | |||
To Net Profit | $ 5,300.00 | |||
$ 16,600.00 | $ 16,600.00 |
(2) Balance Sheet of Lily's Green Thumb | ||||
as on 31st March 2002 | ||||
Liabilities | Amount | Asset | Amount | |
Equity | $ 30,000.00 | Truck | $ 19,500.00 | |
Profit | $ 5,300.00 | Equipment | $ 5,500.00 | |
Creditors for Suppliers | $ 55,000.00 | customer | $ 15,000.00 | |
Salary Due | $ 800.00 | Bank | $ 55,500.00 | |
Creditors for Assets | $ 6,000.00 | Inventory | $ 1,600.00 | |
$ 97,100.00 | $ 97,100.00 |
3) as per my opinion lily green thumb is a good business venture because it earned profit of 5300 with the use of only equity of $ 30000.it earned profit @17.67%which is a good earning ratio. i suggest to bank should give loan to lily's green thumb.
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