Question

Consider the following scenario: You recently inherited $50,000 and you would like to use this money to help start a small business. However, you will need additional funding. We are opening a pet grooming shop in Miami Florida.

• Prepare the financial statements.
  YEAR 1 SALES OVERNIGHT CARE DAY CARE IN HOMECARE WASH YOUR OWN GROOMING RETAIL OBEDIENCE SMALL ANIMAL CARE SPECIAL REQUEST OTHER TOTAL SALES YEAR 2 7000 125050 7250 12000 75600 8600 5200 23000 500 0 264200 YEAR 3 7700 8470 137555 151310.51 7975 8772.51 13200 145201 83160 91476 9460 10406 5720 6292) 25300 27830 550 605 0 290620 319682 DIRECT COST OF SALES OVERNIGHT CARE DAY CARE INHOUSECARE WASH YOUR OWN GROOMING RETAIL OBEDIENCE SMALL ANIMAL CARE SPECIAL REQUEST OTHER TOTAL GROSS PROFIT 2200 65050 2050 4060 5645 1200 1300 14000 200 0 95705 168495 2420 71555 2255 4466 6209.5 1320 1430 15400 220 0 105275.5 185344.5 2662 78710.5 2480.5 4912.6 6830.451 1452) 1573 16940 2421 이 115803.05 203878.95 INDIRECT EXPENSES RENT ELECTRICITY SALARY INSURANCE interest Appox TOTAL 20000 18000 35000 1200 1500 75700 92795 22000 19800 38500 1320 1200 82820 102524.5 242001 21780 42350 1452 1000 90782 113096.95 NETPROFIT
  

Answer 1

Pet Grooming Shop

Income Statement

For the three year ended .........

Particulars	Year 1	Year2	Year3
	Amount ($)	Amount($)	Amount($)
Sales	264,200	290,620.0	319,682.00
Less: Cost of sales	(95,705)	(105,275.5)	(115,803.05)
Gross Profit	168,495	185,344.5	203,878.95
Less: Non-operating Expenses:
Rent	(20,000)	(22,000)	(24,200)
Electricity	(18,000)	(19,800)	(21,780)
Salary	(35,000)	(38,500)	(42,350)
Insurnce	(1,200)	(1,320)	(1,452)
Interest	(1,500)	(1,200)	(1,000)
Net Profit	92,795	102,524.5	113,096.95

Note: From the information given in the question, we can prepare only income statement. Balance cannot be prepared because assets and liabilities informations are not given.