• Read the textbook excerpt and use the information to answer the Question 1.2.2 Flowers by Cam
Cam Tran is a sole trader who operates a small florist shop in Forest Hill,
London (UK). Cam arranges and delivers flowers to local hospitals, hotels and
schools mainly in south-east London. From time to time, she also receives
large orders for weddings. She has three school-aged children.
(a) Define the term sole trader.
[2 marks]
aces
ations
(b) Examine the costs and benefits to Cam Tran in operating as a sole
trader.
[6 marks]
Source: photo courtesy of a
Drive
.
Important things to note:

Miko willingly admits that she is not an accountant by training. she is concerned that her balance sheet might not be correct. she has provided you with the following additional information. 1. the boat actually belongs to miko, not to skysong, inc.. however, because she thinks she might take customers out on the boat occasionally, she decided to list it as an asset of the company. to be consistent, she also listed as a liability of the corporation her personal loan that she took out at the bank to buy the boat. 2. the inventory was originally purchased for $27,500, but due to a surge in demand miko now thinks she could sell it for $39,600. she thought it would be best to record it at $39,600. 3. included in the accounts receivable balance is $11,000 that miko loaned to her brother 5 years ago. miko included this in the receivables of skysong, inc. so she wouldn’t forget that her brother owes her money. (b) provide a corrected balance sheet for skysong, inc.. (hint: to get the balance sheet to balance, adjust stockholders’ equity.) (list assets in order of liquidity.)