blitz

For This or a Similar Paper Click Here To Order Now

Financial Condition
At the beginning of the summer, Jack Wells was looking for a way to earn money to pay for his college tuition in the fall. He decided to start a lawn service business in his neighborhood. To get the business started, Jack used $6,000 from his savings account to open a checking account for his new business, Elegant Lawn Care. He purchased two used power mowers and various lawn care tools for $2,000, and paid $3,600 for a second-hand truck to transport the mowers.
Several of his neighbors hired him to cut their grass on a weekly basis. He sent these customers monthly bills. By the end of the summer, they had paid him $1,200 in cash and owed him another $2,300. Jack also cut grass on an as-needed basis for other neighbors who paid him $1,000.
During the summer, Jack spent $400 for gasoline for the truck and mowers. He paid $1,000 to a friend who helped him on several occasions. An advertisement in the local paper cost $200. Now, at the end of the summer, Jack is concerned because he has only $1,000 left in his checking account. He says, “I worked hard all summer and have only $1,000 to show for it. It would have been better to leave the money in the bank.”
Explain to Jack whether or not he is “better off” than he was at the beginning of the summer. Organize the data using T-accounts.

 

🛑 Struggling with where to start this assignment? Follow this guide to tackle your assignment easily!

✅ Understanding the Assignment
This assignment asks you to analyze Jack Wells’ financial condition at the end of the summer after starting his lawn care business. You will determine if he is financially better off or worse off than when he started. To do this, you need to organize the financial data using T-accounts and explain the results in a clear and logical way.

---

📌 Step 1: Read and Understand Jack’s Business Situation

Before you begin, take time to carefully read the provided case study. Identify the key financial details, such as:
✔ Initial investment (How much Jack started with)
✔ Income earned (How much money he made)
✔ Expenses paid (What costs he had to cover)
✔ Assets he owns (Equipment, truck, and remaining money)
✔ Money still owed to him (Accounts receivable)

---

📌 Step 2: Organize the Data into T-Accounts

A T-account is a simple way to track money coming in (debits) and money going out (credits).

👉 Create two sections in your paper:
🔹 Assets (What Jack owns)
🔹 Expenses (What Jack spent money on)

📝 Example Format for T-Accounts:

Assets (What Jack Owns)

Account	Debit (+)	Credit (-)	Final Balance
Checking Account	$6,000	-$6,000	$0
Equipment	$2,000	-$2,000	$2,000
Truck	$3,600	-$3,600	$3,600
Accounts Receivable	$2,300	-$0	$2,300
Cash Earned	$2,200	-$0	$2,200

Expenses (What Jack Spent)

Expense Type	Amount Spent (-)
Gasoline	$400
Helper’s Wages	$1,000
Advertisement	$200

📢 Your task is to calculate the final value of all assets and compare them to Jack’s initial $6,000 investment.

---

📌 Step 3: Analyze the Results & Draw a Conclusion

Now, answer the key question: Is Jack financially better off than he was at the start?

✅ What to Consider:
✔ Compare his total assets now ($8,900) to his starting amount ($6,000).
✔ Discuss how much he earned vs. how much he spent to run the business.
✔ Explain that although he has only $1,000 in cash, he still owns valuable equipment and a truck, plus $2,300 in accounts receivable.
✔ Suggest ways Jack could have improved his profits (e.g., cutting advertising costs, collecting money from customers sooner).

📝 Final Answer Example:
“Jack may feel like he didn’t make much profit, but financially, he is actually better off. His total assets increased from $6,000 to $8,900, meaning his business added value. However, he needs to collect the money still owed to him ($2,300) to fully realize his profits.”

---

📌 Step 4: Proper Formatting and Citations

This is an academic paper, so make sure you:
✔ Use APA-style headings (e.g., Introduction, Financial Analysis, Conclusion)
✔ Cite any sources (if you use references from books or websites)
✔ Check grammar and spelling to keep your work professional

---

🎯 Final Tip: Explain Like You Are Teaching a Friend!

If someone knew nothing about finances, could they understand your paper? Use simple language and clear explanations to make your points easy to follow.

✅ Now you’re ready to start writing! 🎉

For This or a Similar Paper Click Here To Order Now

WRITE MY ESSAY