First Season Leamonade Stand

First Season of the Lemonade Stand

A balance sheet shows the financial position of a company or individual as of a particular moment in time. This financial statement compares all monetary obligations and all property that is owned to calculate the current financial position of a company or individual. The basic formula for a business balance sheet is: Assets = Liabilities + Equity. For personal finances the formula is: Assets - Liabilities = Net Worth. Because it is a snapshot of the company's or an individual's true financial position, an up-to-date balance sheet is often used when applying for a loan, but can also be used as a tool to achieve future financial goals (Brownfield, 2007; Robert, 2011). This report will give a general overview of the Lemonade Stand season one balance sheet.

First, list all of the company's assets. Assets include cash and property owned (Brownfield, 2007). Assets should be categorized into accounts with titles such as Cash, Temporary Investments, Accounts Receivable (money that is owed to the company), Real Estate Owned, Automobiles, Furniture and Other Property (Brownfield, 2007; Robert, 2011). In the case of the Lemonade Stand the assets were categorized as Cash, Inventories, and Equipment.

Assets

Cash (refer to T Account for Season One) $150.75

Inventories (refer to T Account for Season One) $24.17

Equipment (refer to T Account for Season One) $9.00

Cash ($150.75) +Inventories ($24.00) + Equipment ($9.00) = Total Assets $183.92

(See page 6 of report)

Next, list all liabilities. Liabilities include the everyday bills that are owed. Liabilities should be categorized into accounts with titles. Some examples of current liabilities are credit card bills, cell phone bill and electric bill, mortgage, car loan and...