Kim Fuller Essay

In the early f alone of 2002, Kim afloat(predicate) was utilize as a district gross revenue engineer for a large chemic substance firm. During a routine discussion with rig chemists, congested moderateed that the compevery had highly-developed a use for the recycled material, in disintegrate form, made from plastic soda come in bottles. Because the state had mandatory deposits all boozing bottles. loaded realized that a organise supply of this material was available. All that was unavoidable was an organization to tap that bottle supply, stab the bottles, and deliver the pulverized plastic to the chemical order. It was an opportunity untasted had long awaiteda chance to start a melody. In November 2002 full began checking into the costs have-to doe with in setting up a plastic bottle grinding business. A used truck and 3 trailers were acquired to fill up the empty bottles. overfull purchased wholeness used grinding simple machine entirely had to buy a second wholeness unseasonedSupplies and pans necessary to run and respect the machines were also purchased. chuck-full also purchased a individualised computer with the intention of employ it to proceed company records. These items used $65,000 of the $75,000 filled had saved and invested in the company. A store costing $162,000 was found in an comminuted location for the business. well-lined was able to relate family members enough in this project that three of them, devil sisters and a br different, invested $30, 000 each. These funds gave Fuller the$50,000 rout payment on the warehouse. The rim approved a mortgage for the rest period on the building. In granting the mortgage, however, the bank 0fficial suggested that Fuller start from the beginning with proper chronicle records. He said these records would serve well non only with future bank traffic but also with tax returns and usual likement of the company.He suggested Fuller vex a good comptroller to leave beh ind assistance from the start, to get things going on the right foot. Fullers neighbor, Marion Zimmer, was an accountant with a local anaesthetic firm. When they sat down to talk just about(predicate) the new business, Fuller explained, I know little about keeping proper records. Zimmer suggested Fuller should buy an off-the-shelf business relationship dodging software software program from a local office supply retailer. Zimmer promised to help Fuller shoot and install the package as well as learn how to use it. In order to select the fight package for Fullers needs, Zimmer asked Fuller to list all of the items purchased for the business, a11 of the debts incurred, and the information Fullerwould need to manage the business. Zimmer explained that not al l of this information would be captured by the accounting records and displayed in financial statements.Based on what Fuller told Zimmer, Zimmer promised to create files to match accounting and non-accounting information th at Fuller could penetration through the companys personal computer. As Fullers for the first time lesson in accounting, Zimmer gave Fuller a brief lecture on the character of the chemical equilibrium sheet and income statement and suggested Fuller draw up an opening balance sheet for the company. Confident now that the proceed was starting on solid ground, Kim Fuller opened the warehouse, signed contracts with two local bottling companies, and hired two grinding machine workers and a truck driver. By February 2003 the new firm was making regular deliveries to Fullers former employer.Questions1. What information leave Fuller need to manage the business? Classify this information in two categories accounting information and non-accounting information. 2. See what you mint do to draw up a beginning of business list of the assets and 1iabilities of Fullers company making any assumptions you consider useful. How should Fuller go about putting a value on the companys assets? Using y our values, what is the companys opening owners equity? 3. straight off that Fuller has started to make sales, what information is ask to determine moolah and loss? What should be the general construction of a profit and loss analysis for Fullers business? How frequently should Fuller do such all analysis? 4. What other kinds of changes in assets, 1iabilities, and owners claims will need diligent recording and reporting if Fuller is to keep in control of the business?