The Garden Place—One Year Later

8 Pages Posted: 21 Oct 2008

See all articles by Richard Brownlee

Richard Brownlee

University of Virginia - Darden School of Business

Mark E. Haskins

University of Virginia - Darden School of Business

Luann J. Lynch

University of Virginia - Darden School of Business

Abstract

This case presents a series of financial events for students to record and to use in preparing financial statements.

Excerpt

UVA-C-2068

THE GARDEN PLACE—ONE YEAR LATER

Mary Jane Bowers opened the Garden Place as planned on April 1, 2006. Business during the first year turned out to be somewhat better than expected, and in mid-April 2007, she was considering expanding her product line to include fertilizer, tools, and other garden accessories. She thought she might need an additional loan, however, if she decided to expand. With that idea in mind, she decided to prepare an income statement for the first fiscal year and a balance sheet at fiscal year end in order to get a better idea of how her business had done and to have information to show the bank if she needed to seek additional financing.

The business had been incorporated as planned, and the pickup truck, display equipment, Rototiller, and cash register had been purchased as planned. Those transactions have been posted to the T-accounts in Exhibit 1. In addition, the following information was available to Bowers from the company's checkbook, sales records, purchase records, payroll records, and notes she had written to herself throughout the first fiscal year:

1. Sales for the year were $ 420,000, broken down as follows:

Cash sales

. . .

Keywords: accounting methods accounting financial statement analysis balance sheet income statement

Suggested Citation

Brownlee, Richard and Haskins, Mark E. and Lynch, Luann J., The Garden Place—One Year Later. Darden Case No. UVA-C-2068, Available at SSRN: https://ssrn.com/abstract=1276579

Richard Brownlee (Contact Author)

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States
434-924-4800 (Phone)

HOME PAGE: http://www.darden.edu/faculty/Brownlee.htm

Mark E. Haskins

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States
434-924 -4826 (Phone)

HOME PAGE: http://www.darden.virginia.edu/faculty/haskins.htm

Luann J. Lynch

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States
434-924-4721 (Phone)
434-243-7677 (Fax)

HOME PAGE: http://www.darden.virginia.edu/faculty/lynch.htm

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