The Lemonade Stand

Powerful Essays
Lemonade Stand – Final Report
Carla L. Mathis
Business 599
Lee Meadows
August 3, 2010

This summary seeks to explain financial transactions that have occurred during the final season of the operation of the Lemonade Stand. The preparer has aggregated the data in an effort to fairly and accurately present a financial picture for the Lemonade Stand.
Financial Position Summary
Refer to Appendix I for Season One, Two, and Three Income Statement and Balance Sheet
Income Statement:
The earnings from Season One, Season Two, and Season Three were favorable. The number of units sold remained fairly consistent across all seasons, but expenses were minimal during Season Two and Season Three.
Balance Sheet:
The Stand’s liabilities remained low but increased in Season Three. The owner took more risks which resulted in increased revenues and improvement in the owner’s equity.
Return on Equity:
The Stand was profitable in all seasons of operation. The Stand has generated a good return on the investment of the owners showing a profit of sixty-eight cent on the dollar during Season Three. The strategies used during the previous season seem to be working for the owner.
Return on Assets:
The ROA indicated that wise choices in allocating resources were achieved and remain consistent with Season Two.
Profit Margin
The Stand is maintaining its ability to control its cost hereby sustaining profitability.
Current Ratio
The Stand remains positioned to pay its financial obligations. However, its current ratio decreased by approximately forty-six percent, indicating that the risks taken in buying and selling were great but not costly. The financial health is good.
Cash Ratio
The cash ratio decreased. Because of the instability of the Stand, 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 assets rather than

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Christy Lemonade Stand

    • 290 Words
    • 6 Pages

    Christy’s Lemonade Stand Case 1) No, Christy concept of "earnings" is not a good way to measure how much she earned from her lemonade business. She is recording revenue when she receives the cash rather than when it is earned. Christy still has a liability to meet (product to deliver) and she can only record revenue when the work is performed, in her case, when the lemonade is delivered to the client. Earning an income means that the total revenues exceed the total expenses. Revenues are earned…

    • 290 Words
    • 6 Pages
    Satisfactory Essays
  • Satisfactory Essays

    The name of my lemonade stand is going to be LemonCraze. I chose this name due to high demand of lemonade in Georgia, especially in the summertime. You can make so many different drinks and/or beverages using lemonade, therefore people are crazy about it. I used the word Craze as a verb, because it is insanely exciting. All flavors using fruits, flavoring, and color food dye to make the drinks the fun colors. It is important to have a name that is fun to you, but will also stand out and be fun for…

    • 99 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    Lemonade Stand Case Study

    • 488 Words
    • 2 Pages

    In an ideal world kids running a lemonade stand would never be hassled about whether they had a peddler’s license. But planning commission member Clayton Preble says they are there to create regulations that offer protection in a “not normal world.” The issue arose Monday when Planning and Development Director Richard Osborne presented a relatively brief and simple ordinance to handle peddlers’ licenses. These are permits to sell things door-to-door or from a regular, non-permanent location like…

    • 488 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Report 1 Economic Summary of the Lemonade Stand Toreka Lewis Ashford University BUS 599 Introduction to Quantitative Principles Dr. Harrison Green September 23, 2011 Economic Report 2 This report provides quantative information on the lemonade stand, sourced from financial statements, the business journal, and financial data collected during all three seasons. The following economic summary report will tell how well the lemonade stand’s business is performing by deducting…

    • 742 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Week 3 Lemonade Stand

    • 762 Words
    • 3 Pages

    Lucy’s Luscious Lemonade Alexandra Rogers DeVry University BUSN115 Introduction to Business and Technology Professor Norman Woodin Introduction Lucy’s Luscious Lemonade stand is a equal opportunity employee business. It is our mission to provide the best quality product on the market, have a safe environment for customers and staff and continuously striving toward a positive work environment. My investor, Donald Rogers has an extensive background in running a business and has a budget…

    • 762 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Develop a creative name for your lemonade stand, then explain why the name is important when you are considering branding options. Gimme’ A Break Lemonade Stand is the name I thought suitable for my new entrepreneurship venture. Gimme’ a Break is just as the name implies, intended on giving the busy students and working class of Jonesboro just that, a well deserved break with some of the most refreshing lemonade any one has ever offered in the area. The name centers around the…

    • 648 Words
    • 3 Pages
    Satisfactory Essays
  • Better Essays

    Week 4 the Lemonade Stand

    • 2664 Words
    • 11 Pages

    The Lemonade Stand September 20, 2011 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. This analysis focuses on the financial analysis of The Lemonade Stand during Season 1 and Season 2. The Balance Sheet is another type of financial statement used by a company…

    • 2664 Words
    • 11 Pages
    Better Essays
  • Good Essays

    The Lemonade Stand simulation game puts players in charge of their very own virtual lemonade business. The player has the fundamental ability to change and influence the recipe of the lemonade, the price of the lemonade, and the items needed to sell the lemonade. To begin the game, the player first decides how long they want their lemonade business to last. This eventually leads players to begin selling their lemonade. The one challenge that players face is dealing with the changing weather.…

    • 811 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Lemonade Stand Economic Summary Report John Orr Ashford University Intro to Quantitative Principles BUS599 Dr. Harrison Green October 27, 2010 Lemonade Stand Economic Summary Report Balance Sheet |BALANCE SHEET | | |Season 1 |Season 2 |Season 3 | |Profitability Measures | | |…

    • 1186 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    out and people are thirsty the demand is higher for the cool product, thus I was able to charge more money and make more profits. I enjoyed this activity and the challenge that it provided. It was fun to figure out how many pitchers/cups of lemonade that I thought I might need for the day based upon the temperature and forecast, then to calculate the amount of ice I might use and not have too much of it go to waste at the end of the…

    • 282 Words
    • 2 Pages
    Satisfactory Essays