Once upon a time, there was a smart young girl named Sarah who loved to learn about money. She learned that when a company earns money, they can choose to keep it or share some with their shareholders as a "dividend." She also learned that a company must spend money on things like salaries and supplies, which are called "expenditures" or "expenses."

One day, Sarah decided to start her own lemonade stand business. She made a plan to track the "flow" of money coming in and going out. She was happy to see that she was making a "gain" at the end of each day.

As her business grew, Sarah started to buy more supplies in bulk to save money. This is called "inventory." She also decided to rent a small storefront instead of setting up her stand on the sidewalk, which is called a "lease."

As Sarah's business continued to grow, she was able to save some of her profits and put them in a savings account, which earned "interest." Sarah was happy to see that her smart choices were leading to even more money for her business and for her future.

The end.

Reflections

1. What did Sarah learn about how companies use their profits?
2. What is the purpose of tracking the flow of money in a business?
3. How did Sarah make her lemonade business more successful?
4. Why is it important to save money and earn interest?