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Financial Summary Report

In: Business and Management

Submitted By mrslewis09
Words 251
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Financial Summary Report
Toreka Lewis
BUS 599 Introduction to Quantitative Principles
Dr. Harrison Green
September 12, 2011

This summary seeks to explain financial transactions that have occurred during Season One and Season Two of the operation of the Lemonade Stand. The owners have combined the data in effort to fairly and accurately present a financial picture for the Lemonade Stand.
Financial Position Summary
Income Statement: the earnings from Season One and Season Two were not favorable. The number of units sold did not remain fairly consistent across the two seasons, but expenses were minimal during Season Two.
Balance Sheet: the stand’s liabilities remained low in both seasons. They took more risks which resulted in decreased revenue in Season Two.
Return on Equity: the stand was profitable in both seasons of operation. The stand has generated a good return on the investment.
Return on Assets: the ROA indicated that wise choice in allocating resources were achieved and remained the consistent with Season Two.
Profit Margin: the stand is maintaining its ability to control its cost by hereby sustaining profitability.
Current Ratio: the stand remains positioned to pay its financial obligations. The financial health is good.
Cash Ratio: the cash ratio decreases in Season One because of the instability of the stand, but increased in Season Two, the creditors may proceed with caution.
Debt Ratio
At this time, the stand is at risk.
Debt-Equity Ratio: based on the calculations, the company is in strong financial health and operating on

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