Arborista inc | Accounting homework help

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

Save Time On Research and Writing
Hire a Pro to Write You a 100% Plagiarism-Free Paper.
Get My Paper

Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

It's no longer good enough to create a high-quality product at a reasonable cost.
That is why we have created 9 compelling warranties to make your usage of our service pleasant, simple, and secure.

Money-back guarantee

You must be completely confident in the quality of your products in order to provide a money-back guarantee. This is precisely how custom paper writing services work. We double-check that there are no hidden issues with this promise and that you are completely happy with the quality of your purchase.

Read more

Zero-plagiarism guarantee

Our writers do not employ others’ writing tricks, because we are aware that plagiarism may cost a lot to our clients and take away their reputation.

Read more

Free-revision policy

We want you to be satisfied with your order, so we offer a free revision policy. If you are not completely happy with your order, let us know and we will revise it for free.

Read more

Privacy policy

We care about our customers and always strive to keep their trust. That’s why guarantees privacy and safety of your personal information. To ensure total security, we take the following measures:

Read more

Professional Editors

Our team of editors works tirelessly to ensure that all papers meet our high standards for quality. They check for the instructions, grammar, punctuation, and spelling mistakes as well as for plagiarism.

Read more

Fair-cooperation guarantee

We would never want to jeopardize our relationship with you, and that is why we offer a fair-cooperation guarantee: If for any reason you are not satisfied with your order, you can always get your money back.

Read more

Professional Writers

We only hire the best, most qualified professionals to work on your order. Each writer is a degree holder with extensive experience in their field. You can be assured that your project will be handled by a true expert.

Read more

Quality Control

Our quality assurance department ensures that each paper is of excellent quality before it is sent to you. You can be sure that your paper will meet all of the requirements that you set. Our experts are highly skilled and will follow your specific instructions to the letter.

Read more

Customer support

We have a highly professional and qualified customer support team that is available 24/24, 365 days a year. They will be more than happy to answer any questions or concerns that you may have about our company or products. You can contact them by phone, email, or chat on our website.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Open chat
Order through WhatsApp!
You Can Now Place your Order through WhatsApp

Order your essay today and save 30% with the discount code DISCOUNT2022