# AFM123 Study Guide - Lemonade Stand, Piggy Bank

by

School

University of WaterlooDepartment

Accounting & Financial ManagementCourse Code

AFM123Professor

Richard EnnisThis

**preview**shows half of the first page. to view the full**1 pages of the document.**Lemonade Stand example

• Mike wants to run a lemonade stand on the

weekend

• Takes $30 from piggy bank

• Buys 4 dozen lemons @ $5 / dozen, 1 package

paper cups @ $4

• Saturday:

– sells lemonade for $19 cash

– sells lemonade to someone who promises to pay $3

tomorrow

– uses 2 dozen lemons, half the cups

– Mike’s friend repays $5 that he borrowed two weeks ago

– Lemons increase to $6 / dozen

• Sunday:

– sells lemonade for $18 cash, collects $3 promised

– uses remaining lemons & cups

###### You're Reading a Preview

Unlock to view full version