Octane Service Station Case Solution

Case Solution

The owner of a gas station must prepare financial statements.

Excel Calculations

Balance Sheet at May 1 & June 30

Income Statement for May and June

Ending Inventory

Gas station Alternatives

Alternaive Investment

Income Statement 2

Questions Covered

Prepare a May 1 and a June 30 balance sheet for Julio Trevino’s service station and an income statement for the intervening period.

Has Julio Trevino’s investment in the gasoline station been a good one for him? Has his return on his investment been greater or less than he would have received had he invested his funds at 15% elsewhere?