Katerina Slovenka decided to turn her love of movies into a small business and has just finished her first month operating a neighbourhood video store.She has kept a notebook of her financial transactions for the month and has approached you to help her decide if she should continue in business.She is discouraged, because although she thought she rented a lot of movies, her bank account has decreased instead of increased.She started the business by buying 100 DVDs; she estimates that the average video has a rental life of three months and that she will add 40 new and replacement titles every month.
Katrina's Notebook

\begin{array}{llr}\text { Date } & \text { Purpose } & \text { Amount } \\\text { June 1 } & \text { opening balance } & \$ 1,000 \\\text { June 1 } & \text { purchase of 100 titles } & -400 \\\text { June 1 } & \text { payment of June's rent } & -250\\\text { June 1-8 } & \text { rental fees collected } & 175 \\\text { June } 2 & \text { purchase of office supplies } & -125 \\\text { June } 9-16 & \text { rental fees collected } & 200 \\\text { June } 17^{\text {th }} & \text { late fees collected } & 5\\\text { June } 18^{\text {th }} & \text { purchase of DVD player for the store to show movies } & -225 \\\text { June } 17-24 & \text { rental fees collected } & 225 \\\text { June 26 }^{\text {th }} & \text { ordered in pizza } & -20 \\\text { June 24-20 } & \text { rental fees collected } & 250 \\\text { June 30 }^{\text {th }} & \text { payment of July's rent } & -250\end{array}

Required:
A) Prepare a statement that organizes the information collected in a useful way.B) Explain to Katerina why you organized it the way you did.
C) Should Katerina continue in business? Support your answer.

Which of the Following Statements About Private Corporations Is True

Multiple Choice

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