Reference no: EM13591318

Charlie Driver has $35,000 saves and has decided to attend college, taking courses in marketing and retailing. To help pay his tuition and living expenses, he contracted with a mobile catering company as an independent driver. Charlie will run his mobile catering business on a cash basis; he named his business Charlie' s Convenient Catering or The 3C Company for short. He opened a company bank account with $35,000. He bought a used, fully equipped mobile catering truck for $29,000, and operated from January 4 to December 31,2005. At the end of the year, Charlie had $28,110 in the bank and $208 in a cash drawer. Invoices show he purchased food, beverages, and supplies inventories for $48,222; ending inventory remaining on the truck was $280. His invoices for truck operating expenses paid in cash total $3,288, and he has one unpaid truck repair invoice for $188. Charlie withdrew $2,400 a month for personal expenses. The truck has a five-year life and a residual value of $4,000, and straight-line depreciation is to be used. Charlie asks you to help him put together his business information and reconstruct his cash sales. He recorded his daily cash sales in a notebook that can not be found . Calculate 3C Company sales revenue and prepare an accrual income statement. Charlie is concerned that he has less cash now than he had when he started. Explain why.