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Avery has always wanted to own their own business. Last year, they took the leap and opened a pet store in a nearby city. They lease the store. They incurred start-up costs and large inventory costs for buying food in bulk. They had to purchase three large tables and a machine that moves the food to higher shelves for storage. They even hired five people: a groomer, two clerks, a stock person, and a bookkeeper. Unfortunately, the bookkeeper has accounting experience but no tax experience. Now, they are lost.
Problem 1: How do they handle the start-up costs? What kinds of assets can they depreciate?
Problem 2: What kinds of records should they keep?
Financial Statement Analysis and Preparation
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T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .
Computation of Free Cash Flow
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