Reference no: EM131436082

Question: Whilst on holiday in Bridlington, Helen had her credit cards and purse stolen from the beach while she was swimming. She was left with only £40, which she had kept in her hotel room, but she had three days of her holiday remaining. She was determined to continue her holiday and decided to make some money to enable her to do so. She decided to sell orange juice to holidaymakers using the local beach. On day 1 she bought 80 cartons of orange juice at £0.50 each for cash and sold 70 of these at £0.80 each. On the following day she purchased 60 cartons at £0.50 each for cash and sold 65 at £0.80 each. On the third and final day she purchased another 60 cartons at £0.50 each for cash. However, it rained and, as a result, business was poor. She managed to sell 20 at £0.80 each but sold off the rest of her inventories at £0.40 each.
Required: Prepare an income statement and cash flow statement for each day's trading and prepare a balance sheet at the end of each day's trading.