This is good for the business because it indicates a good level of consumer loyalty, an important factor in economic markets. The business, however, incurs the opportunity cost of holding too much cash instead of investing it in other profitable areas. Despite the fact that the number of equipment has also increased, a lot of revenue is lost as the machinery is idle for most of the day because the business only operates for seven hours. The next best alternative is to use cash reserves for product promotion for the owner to be motivated enough to work for more hours even if the sales in a day are not encouraging.
Return on equity ration for season 1 was In season 2, it was This means that in season 1, the shareholders equity generated more income than in season 2.
Return on assets ration for season 1 was This indicates that the business generated more revenue from its assets in season 1 than in season 2. The profit margin ration in season 1 was On the other hand, the inventory turnover ration in season 1 was 5.
It indicates that the business turned its inventory into revenue many times in season 2 than in season 1.
The assets turnover ratio for season 1 and season 2 are 0. This indicates that in season 1, the business used its assets more efficiently than in season 2. The current ration for season 1 and season 2 respectively are 5.
This shows that the business is able to settle its current obligations. This ability is grater in season 2 than in season 1. The cash ratios for season 1 and season 2 are 4. This shows that the company is able to settle its current obligation using its cash.
Finally the debt equity ratio fro season 1 is 0. This means that the business is able to borrow more money in season one than in season 2. Comparison of lemonade business with Temptation foods limited Temptation foods limited offer recipe food, vegetables, fruits, etc.
This company has remarkably grown. It is not a perfect match of Lemonade business but there are similarities in products offered. In the yearthe current ratio for Temptation food limited was 2.
This shows that Lemonade business has greater ability of settling its current obligations than Temptation food limited. The debt-equity ratio for Temptation food limited was 0.
The inventory turnover ratio for Temptation food limited is This means that Temptation foods limited is able to turn its inventory many times than Lemonade business. The cash ratio for Temptation food limited is 9.
Conclusion For Lemonade business to do well in the next season, the management should fully utilize resources. This will ensure that revenues are enough to generate net income.
They should reduce investment particularly in inventories. They should concentrate on improving the return on equity ratio. They should work on debt financing ratio and also try to finance operations from equity which will result to reduction on the interest expense.
Elsevier Last modified on Tuesday, 15 May This report provides factual quantative information on Lemonade Stand, sourced from financial statements, the business’ General Journal and financial data collected during Seasons One, Two and Three.
The following economic summary report will consider how well Lemonade Stand’s business is. from the Lemonade Stand THE Basic Accounting Fresh from the Lemonade Stand Updated & Revised of accounting and financial principles.
It is, however, a serious and very effective ex- The accounting game: Basic accounting fresh from the lemonade stand Darrell Mullis, Judith Orloff. Financial health of the Lemonade Stand Business Write a three- to four-page financial summary report (not including the title page) that presents the financial health of the Lemonade Stand Business.
As part of your report, include both an Income statement and Balance Sheet. The Accounting Game presents financial information in a format so simple and so unlike a common accounting textbook, you may forget you're learning key skills that will help you get ahead!
This book uses the world of a kid's lemonade stand to teach the basics of financial language and records/5(4). Accounting Summary Report Curline Registe BUS Instructor Roberts July 14, Accounting Summary Report Write a three- to four-page accounting summary report (not including the title page) that presents the financial reports for the Lemonade Stand Business.
The Lemonade Stand September 20, The Lemonade Stand Financial Analysis The Income Statement is the financial report that depicts the operating performance of a company (revenues less expenses generated = profit) over a specific period of time and facilitates the analysis of a company’s growth, cost, and profitability.