Marcy's Foods, Inc.—a wholesale supplier of ingredients for the New York City restaurant industry—has just completed its second year of operations, and founder Claire Marcy has hired local CPA Tom Hughes to prepare financial statements for the year. Having worked with Hughes the year before, Marcy is once again relying on him to help her assess the performance of the company.

This fictionalized case places students in Hughes's shoes, introducing them to the basics of recording transactions using journal entries and T-accounts and the basics of preparing financial statements. It can be taught as a stand-alone case, or it can be paired with "Marcy's Foods, Inc." (UVA-C-2496), which relates to the company's first year of operations.