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CHAPTER 9
Cookie Creations
(Note: This is a continuation of the Cookie Creations from Chapters 1 through 8.)
CC9 One of Natalie’s friends, Curtis Lesperance, runs a coffee shop where he sells
specialty coffees and prepares and sells muffins and cookies. He is eager to buy one of
Natalie’s fine European mixers, which would enable him to make larger batches of
muffins and cookies. However, Curtis cannot afford to pay for the mixer for at least 30
days. He asks Natalie if she would be willing to sell him the mixer on credit.
Natalie comes to you for advice. She asks the following questions.
1. “Curtis has given me a set of his most recent financial statements. What calculations
should I do with the data from these statements, and what questions should I ask
him after I have analyzed the statements? How will this information help me decide if
I should extend credit to Curtis?”
4. On November 30, a friend of Natalie’s asks her to teach a class at the neighborhood
school. Natalie agrees and teaches a group of 35 first-grade students how to make
gingerbread cookies. The next day, Natalie prepares an invoice for $300 and leaves
it with the school principal. The principal says that he will pass the invoice along to
the head office, and it will be paid sometime in December.
Instructions
(a) Answer Natalie’s questions.
