Business Analysis of a Lemonade Stand Essay

Business Analysis of a Lemonade Stand Essay

Length: 1125 words (3.2 double-spaced pages)

Rating: Good Essays

Open Document

Essay Preview

The information illustrated from the journal, to the income statement, to the balance sheet discloses the original expenditures of the Lemonade stand's fixed assets and the accumulated financial loss transcribed over Season One, which includes six days of revenues and expenses, which shows the standard practices of accounting methods appearing on the journal, income statements, and balance sheet attached for the Lemonade stand. The accounting data format sets up a proportion of financial statements at any time the company wants to know how things stand in fiscal matters for the lemonade stand. For just about every company, a financial statement is prepared at some point in time of each calendar month, quarter, and annually reporting periods. For the purpose of the Lemonade stand, the financial statements will be prepared on the 6th day of the Season, which is the ending period and the close of business of the last day of the profit reporting period. So for all purposes of the Lemonade stand, the company's balance sheet should be in alignment with their income statement.
There are a couple formal practices for accounting systems or methods for keeping track of the Lemonade stand's financial state of affairs, which is called a cash and accrual basis accounting system. Cash basis accounting acknowledges transactions when the hard cash exchanges hands. A small business like the Lemonade stand with relatively few transactions each month can uses this system as well. For the purposes of the paper, the accrual basis accounting method was used to demonstrate the Lemonade stand position. Accrual basis accounting realizes income when it is earned and expenditures when they are incurred. Under the accrual method, a bill like the store ac...

... middle of paper ...

...method to have more than one pitcher. The pitchers were an unnecessary purchase from the standpoint of purchasing excessive amounts of equipment. From the perspective of revenues versus expenses, the Lemonade stance was profitable leaving a net income and profit from the beginning to the end of the reporting period. The accounts payable uses half of the owner's capital, which was useful because the money was cash invested to start the business, which decrease the amount of liabilities presented on the balance sheet. Overall, the Lemonade stand was successful. From day one to day three the ending store balances and cash balances continues to increase. On day four, the stand paid the store account dropping revenues for that day. On day five and six, the cash sales for those days picked up and the expenses decrease by 3 cents, which was minor but helpful with revenues.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Essay about Analysis Of Alex 's Lemonade Stand Foundation

- ... Most likely this event will become an annual event; however, there were no advertisements outside of their website to inform the local population of the event. Additionally, in larger cities such as Washington DC, Boston, New York City, and Chicago (just to name a few), there are bus lines, subway stations, trolley’s, and other public modes of transportation that allow temporary ads to be placed on or in these modes of transportation. This type of advertisement would be a great fit for a nonprofit organization....   [tags: Non-profit organization, Fundraising, Lemonade]

Good Essays
990 words (2.8 pages)

Business Analysis: WellPoint Essay

- Introduction WellPoint is considered one of the leading commercial health benefits companies in the United States. WellPoint is a health benefits company engaged in providing managed care and health insurance products. The company is an independent licensee of the Blue Cross Blue Shield Association (BCBSA). It is licensed conduct insurance operations in all 50 states of the US through its subsidiaries. WellPoint covers more than 34.8 million people and focus’s on improving the lives of the people and the health of its communities through its healthcare services....   [tags: Business Analysis ]

Good Essays
850 words (2.4 pages)

ABC, Inc Business Analysis Essay

- This analysis of ABC, Inc. has been entrusted to our Six Sigma Counseling firm. At A&A Solutions, we specify on training and hiring conflicts within a company’s structure. ABC, Inc. has hired our company to find investigate problems occurring; how they occurred, and to obtain solutions to the problems found. The Operations Manager of ABC, Inc. would also be informed if any of the employees are involved in the cause of the problems. Background Information of the Problem The Operations Supervisor Monica Carrolls, has entrusted Carl Robins to recruit and train 15 new hires....   [tags: Business Analysis]

Good Essays
915 words (2.6 pages)

Essay Business Analysis: WorldCom Inc.

- Imagine if you would, being a brand new business school graduate and being offered the opportunity to work for one of the largest and most prestigious company in the United States. Not only that, at WorldCom, you may be "granted compensation beyond the company's approval salary and bonus guidelines."(Kaplan & Kiron, p. 3) If you are exceeding more talented, you could be like the CEO who "in addition to his full-time job [...] was managing several unrelated businesses."(Kaplan & Kiron 2007, p. 11) It is fair to say that a majority of job seekers, to say the least, would jump at the opportunity to perform in that role and within that culture of aggressive performance and rewards....   [tags: Business Analysis ]

Good Essays
1066 words (3 pages)

Deborah Tall's From Where We Stand Essay

- Deborah Tall's From Where We Stand In her book, From Where We Stand, Deborah Tall, tells us the story of coming to Geneva, New York, to begin teaching. It is a personal account of coming to terms with a new and foreign place. It gives us the chance of watching her learn about landscapes, people, and history. It moves through time, through her own life, and especially through motherhood. In the end, and after more than a decade, she gives us the signs of what it means to live out of and within the place where you are....   [tags: Deborah Tall Where Stand Essays]

Free Essays
1531 words (4.4 pages)

Essay on Analysis Of Business Specialties

- Analysis of Business Specialties Team Achieve identified three different potential types of consulting firms in our first meeting. We have since decided on the strategic model of consultancy. The new strategic consultancy firm will be named Achieve after the team. As a strategic firm Achieve will have the benefit of founding members with varied professional backgrounds. The drawback to the strategic format without a specialty niche is the need for continual refocus of team efforts to ensure the specific client¡¦s needs are met....   [tags: Business Analysis]

Free Essays
1106 words (3.2 pages)

Virtual Organization Business Analysis Essay

- Virtual Organization Business Analysis In the business world today, businesses are established and created as the demand for their particular specialty increases. The demand for these specialties can come from a multitude of influences. These influences include economic, government, and legal. There are five particular businesses that were established due to the influences talked about earlier. I will talk about each of these businesses, what key economic, government, and legal influences impacted each of the businesses, and my opinion on which company influences had the greatest impact on them....   [tags: Business Analysis]

Free Essays
724 words (2.1 pages)

Walmart Business Analysis Essay

- For the final group project we chose to complete a management analysis on Wal-Mart. Covered in this paper are the issues of productivity, hiring practices, corporate social responsibility and culture, diversity and affirmative action, the use of information technology, leadership, teamwork, and managing ethics. Productivity is very important to any successful business. Wal-Mart has increased its productivity through many different advances. Business analysts have long admired Wal-Mart's logistics management, even though the public recognizes them for their low discounted prices....   [tags: Business Analysis]

Good Essays
1511 words (4.3 pages)

Shiseido Business Analysis Essay

- Shiseido Business Analysis Shiseido was founded in 1872 in Japan and started to export its products in 1929. Therefore the company has had the advantage of being one of the first movers. This is one of the reasons why Shiseido's products have reached a high degree of market penetration. S: The main strength of Shiseido is that the company is focusing on offering high quality products. In order to do so they developed a unique strategy of combining Western technology with the regional needs of every country in which their products are sold....   [tags: Business Analysis]

Good Essays
715 words (2 pages)

3M Business Analysis Essay

- 1. How the 3 M innovation process evolved from the time the company was found. Answer: • The innovation process at 3M has typically been a focus area for the upper management. The company had taken a get–out–of–the–way attitude towards the product developers who in turn have worked accordingly towards innovation. Along with technicians each team had a process engineer to ensure that the product was efficiently made. The entire team did not face any risk if the product failed. • The product developers used to visit the factories and workplaces to talk to the workers to get ideas for products....   [tags: Business Analysis]

Good Essays
1050 words (3 pages)