{"id":87116,"date":"2022-08-12T16:56:28","date_gmt":"2022-08-12T16:56:28","guid":{"rendered":"https:\/\/assignmenttutors.net\/blog\/arborista-inc-accounting-homework-help\/"},"modified":"2022-08-12T16:56:28","modified_gmt":"2022-08-12T16:56:28","slug":"arborista-inc-accounting-homework-help","status":"publish","type":"post","link":"https:\/\/assignmenttutors.net\/blog\/arborista-inc-accounting-homework-help\/","title":{"rendered":"Arborista inc | Accounting homework help"},"content":{"rendered":"
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Arborista – Cash Flows, IS and BS Case Study<\/span>
Arborista, Inc. plants trees and shrubs for homeowners. The trees are purchased from and<\/span>
delivered by a sister company, Trees-R-Us, Inc.; Arborista specializes in planting.<\/span>
Arborista obtained capital from family members in exchange for common stock, which<\/span>
provides an ownership interest to the family members. On December 1, a total of $50,000 was<\/span>
raised by issuing 10,000 shares of stock. An additional $20,000 was borrowed from their hometown<\/span>
bank, also on December 1. The principal must be repaid at the end of two years, along with 6<\/span>
percent interest annually, which accrues as time passes.<\/span>
Also on December 1, Arborista took delivery of, and began using in the business, two<\/span>
previously owned Ford F-250 pick-ups for which it paid cash of $7,000 each. These trucks are<\/span>
expected to last for five more years, and the best guess is that each will be worth $1,000 at the end<\/span>
of the five-year period.<\/span>
Arborista hired two employees to do the planting: Frank and Franc\u00b8ois. Frank is extremely<\/span>
knowledgeable, but a bit taciturn. Franc\u00b8ois is generally ebullient and has a lovely accent, and so his<\/span>
services were in high demand by the customers of his former employer. As a result of his popularity,<\/span>
Franc\u00b8ois negotiated a deal with Arborista that he will be paid in advance for every job (i.e., at the<\/span>
time the job is scheduled). Frank is happy to follow the more generally accepted method of being<\/span>
paid after he does the work. The employees furnish their own tools (i.e., shovels and picks).<\/span>
Arborista decides to charge $75 for planting each tree. The worker planting the tree (i.e., Frank<\/span>
or Franc\u00b8ois) will receive $20 per tree as his wage.<\/span>
On December 18, two clients came into the office to arrange to have trees planted on their<\/span>
property. The first client, Ms. Imaprimadonna, was insistent that her 20 trees\/shrubs be planted the<\/span>
next day, as it was critical that the work be completed before the holidays. Furthermore, she insisted<\/span>
that Frank do the planting, as she had heard Franc\u00b8ois was the chatty type and she did not want to<\/span>
pay someone to chat. In addition, she insisted that Frank must arrive at her house before the clock<\/span>
struck 8:00 a.m., or the order was cancelled. Finally, Ms. Imaprimadonna insisted that she be billed<\/span>
for the job and allowed to pay in three weeks.<\/span>
The second client, Ms. Bonappetit, wanted 30 trees\/shrubs planted. She was flexible about<\/span>
when the work would be completed, as long as it was scheduled after the first of the year. However,<\/span>
she did ask that Franc\u00b8ois do the work, as she had heard wonderful things about his charming<\/span>
manner from her friend. Ms. Bonappetit insisted on paying in advance, and immediately wrote a<\/span>
check for the total amount. Arborista scheduled Franc\u00b8ois to do the work in four weeks and, per their<\/span>
agreement, paid him immediately.<\/span>
Frank arrived at Ms. Imaprimadonna\u2019s home at 7:59 a.m. on December 19 and completed the<\/span>
planting to her satisfaction. His next payday is January 5. Ms. Imaprimadonna paid promptly on<\/span>
January 8. Franc\u00b8ois performed the work for Ms. Bonappetit on January 15. Both customers<\/span>
promised to recommend Arborista, Inc. to their friends.<\/span>
Required<\/span>
Prepare a balance sheet, income statement, and statement of cash flows as of December 31<\/span><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Arborista – Cash Flows, IS and BS Case StudyArborista, Inc. plants trees and shrubs for homeowners. The trees are purchased from anddelivered by a sister company, Trees-R-Us, Inc.; Arborista specializes in planting.Arborista obtained capital from family members in exchange for common stock, whichprovides an ownership interest to the family members. On December 1, a total […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[],"class_list":["post-87116","post","type-post","status-publish","format-standard","hentry","category-education"],"_links":{"self":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/87116","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/comments?post=87116"}],"version-history":[{"count":0,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/87116\/revisions"}],"wp:attachment":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/media?parent=87116"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/categories?post=87116"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/tags?post=87116"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}