Post your income statement, balance sheet, economic profit statement and financial ratios for season one, two and three of your lemonade stand that are going to be used in your economic report. Point out two items in your report that you think are most interesting.
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Season 3 was another profitable period for the stand , as the stand bounced back from lower revenues in season 2 . The weather was better this season as there were three sunny days and two normal days . Net income increased by 13.1 % and revenue increased by 11.36 % . I wanted to make the season a little more interesting so I decided to purchase more equipment to see if there was a difference in the operation of the stand . For the most part , I kept the supply purchases consistent with season 2 and I kept the price constant as not to introduce too many new variables and not be able to determine which , if any , made a difference . It was interesting that the ROE and ROA percentages went down again , yet the profit margin percentage increased again , by 1.16 % . Expenses this season were a little higher due to the increase in sales . The stand managed to do a good job in maintaining low inventory levels , which helped the inventory turnover level out at once per day . Current and cash flow numbers look good as the assets increased more than the minimal increase in accounts payable . The stand remains in excellent position should it desire to acquire a loan . Economic profit bounced back this season as it more than doubled season 2 . This was an interesting exercise that definitely achieved its purpose of getting us to think critically concerning business operations and the associated accounting financial statements and ratios .