Young Man Inc., a new clothing retail store, has completed its first year of operations effective May 31, 2012. The owner is anxious to know how the company has performed financially and to assess this performance. Based on the case information, the first fiscal year's financial statements (income statement and statement of financial position) must be prepared along with an assessment of performance.

One year after opening a gift shop, a young entrepreneur reviews his results. This exercise requires students to record the business transactions and necessary adjusting entries for the year, and prepare an income statement and balance sheet. This is an introductory transaction analysis case for an introductory finance course.