On March 1, 2018, you start “Road to Broad T-Shirts” in a kiosk outside the Business College. The following events occurred during the month of March:
Investment: You use your savings of $60,000 to start the business as a corporation as the only stockholder.
Kiosk Purchase: You buy a kiosk for $12,600 cash. The kiosk will be useful for six months and will have no value at the end of the sixth month.
Labor Cost: You hire your friend, Joey, to work the kiosk. You pay him $800 on March 31, for his work during the month of March.
Cell Phone Bill: Your first cell phone bill arrived at the end of March totaling $125; which you will pay on the first day of April.
T-Shirts: On March 1 you buy 900 T-shirts, paid in cash on delivery, each for $9. During March, you sell 600 of the T-shirts, each for $21, selling 450 for cash and 150 to a student group on credit. The student group plans to pay you back by April 15.
a). At the end of March, how much cash did Road to Broad T-Shirts have?
b). How well did Road to Broad T-Shirts perform in March? In other words, how profitable was it?
c). What were Road to Broad T-Shirts' resources and obligations at the end of March?
d). You should find the net resources and obligations at the end of March is $64,175. How do you explain the source of this amount?