Solution-Create a cash flow statement

Create a cash flow statement

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Question - Wally started a weekend widget stand on his landlord's front lawn with a $2000 inheritance (owner investment). He relied on his brightly-colored stand, drive-by traffic, and word-of-mouth to attract customers. The stand has a market value of $500. Wally paid his landlord $15 up front for a year of lawn space and spent another $150 on the stand, which has a lifespan of four years. The city heard about his scheme and charged him $30 for a permit.

In his first year of business, Wally acquired 1000 widgets for $1.00 each and sold all but 50 of them at 80% markup. Due to a defect in some of the product, he discounted a total of $10.

Additional costs included $30.00 in UPS bills and $10.00 for 1000 bags. Sales tax amounted to $106. The Marginal Tax Rate (MTR) is 25%.

Create a Cash Flow Statement and do not include dollar sign, numbers only and no decimals.

Reference no: EM133053856

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Create a cash flow statement

Reference no: EM133053856

Reference no: EM133053856

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