Arborista – Cash Flows, IS and BS Case Study
Arborista, Inc. plants trees and shrubs for homeowners. The trees are purchased from and
delivered by a sister company, Trees-R-Us, Inc.; Arborista specializes in planting.
Arborista obtained capital from family members in exchange for common stock, which
provides an ownership interest to the family members. On December 1, a total of $50,000 was
raised by issuing 10,000 shares of stock. An additional $20,000 was borrowed from their hometown
bank, also on December 1. The principal must be repaid at the end of two years, along with 6
percent interest annually, which accrues as time passes.
Also on December 1, Arborista took delivery of, and began using in the business, two
previously owned Ford F-250 pick-ups for which it paid cash of $7,000 each. These trucks are
expected to last for five more years, and the best guess is that each will be worth $1,000 at the end
of the five-year period.
Arborista hired two employees to do the planting: Frank and Franc¸ois. Frank is extremely
knowledgeable, but a bit taciturn. Franc¸ois is generally ebullient and has a lovely accent, and so his
services were in high demand by the customers of his former employer. As a result of his popularity,
Franc¸ois negotiated a deal with Arborista that he will be paid in advance for every job (i.e., at the
time the job is scheduled). Frank is happy to follow the more generally accepted method of being
paid after he does the work. The employees furnish their own tools (i.e., shovels and picks).
Arborista decides to charge $75 for planting each tree. The worker planting the tree (i.e., Frank
or Franc¸ois) will receive $20 per tree as his wage.
On December 18, two clients came into the office to arrange to have trees planted on their
property. The first client, Ms. Imaprimadonna, was insistent that her 20 trees/shrubs be planted the
next day, as it was critical that the work be completed before the holidays. Furthermore, she insisted
that Frank do the planting, as she had heard Franc¸ois was the chatty type and she did not want to
pay someone to chat. In addition, she insisted that Frank must arrive at her house before the clock
struck 8:00 a.m., or the order was cancelled. Finally, Ms. Imaprimadonna insisted that she be billed
for the job and allowed to pay in three weeks.
The second client, Ms. Bonappetit, wanted 30 trees/shrubs planted. She was flexible about
when the work would be completed, as long as it was scheduled after the first of the year. However,
she did ask that Franc¸ois do the work, as she had heard wonderful things about his charming
manner from her friend. Ms. Bonappetit insisted on paying in advance, and immediately wrote a
check for the total amount. Arborista scheduled Franc¸ois to do the work in four weeks and, per their
agreement, paid him immediately.
Frank arrived at Ms. Imaprimadonna’s home at 7:59 a.m. on December 19 and completed the
planting to her satisfaction. His next payday is January 5. Ms. Imaprimadonna paid promptly on
January 8. Franc¸ois performed the work for Ms. Bonappetit on January 15. Both customers
promised to recommend Arborista, Inc. to their friends.
Prepare a balance sheet, income statement, and statement of cash flows as of December 31
Try it now!
How it works?
Follow these simple steps to get your paper done
Place your order
Fill in the order form and provide all details of your assignment.
Proceed with the payment
Choose the payment system that suits you most.
Receive the final file
Once your paper is ready, we will email it to you.
Assignment Help has assembled a team of highly skilled writers with diverse experience in the online writing circles. Our aim is to become a one stop shop for all your Academic/ online writing. Check out below our amazing service!
At Assignment Help, we prioritize on all aspects that creates a good grade such as impeccable grammar, proper structure, zero-plagiarism, and conformance to guidelines. The principal purpose of essay writing is to present the author's evaluation concerning a singular subject about which they have made. Since Professionalism is the mother of every success, try our team of experienced writers in helping you complete your essays and other assignments.
You have been trying to join that prestigious institution you long yearned for, but the hurdle of an admission essay has become a stumbling block. We have your back, with our proven team that has gained invaluable experience over time, your chance of joining that institution is now! Just let us work on that essay.How do you write an admission essay? How do you begin the essay? For answers, try Quality Custom Writers Now!
Editing and Proofreading
Regardless of whether you're pleased with your composing abilities, it's never an impractical notion to have a second eye go through your work. The best editing services leaves no mistake untouched. We recognize the stuff needed to polish up a writing; as a component of our editing and proofreading, we'll change and refine your write up to guarantee it's amazing, and blunder free. Our group of expert editors will examine your work, giving an impeccable touch of English while ensuring your punctuation and sentence structures are top-notch.
We pride ourselves in having a team of clinical writers. The stringent and rigorous vetting process ensures that only the best persons for job. We hire qualified PhD and MA writers only. We equally offer our team of writers bonuses and incentives to motivate their working spirit in terms of delivering original, unique, and informative content. They are our resources drawn from diverse fields. Therefore your technical paper is in the right hands. Every paper is assessed and only the writers with the technical know-how in that field get to work on it.
College Essay Writing
If all along you have been looking for a trustworthy college essay service provider that provides superb academic papers at reasonable prices, then be glad that you search has ended with us. We are your best choice! Get high-quality college essay writing from our magnificent team of knowledgeable and dedicated writers right now!
Quality Assignment/Homework Help
We give the students premium quality assignments, without alarming them with plagiarism and referencing issues. We ensure that the assignments stick to the rules given by the tutors. We are specific about the deadlines you give us. We assure you that you will get your papers well in advance, knowing that you will review and return it if there are any changes, which should be incorporated.