Please create an example of an Cash Flow Statment for this business:

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please create an example of an Cash Flow Statment for this business:

Total Cost of Production for One Month:

 

Fixed Costs:

 

Warehouse Space Rent

$600.00

Wages

$1800.00

Utilities (Water, Electricity, Gas)

$700.00

Loan Repayment

$800.00

Total

$3900.00

Variable Costs:

 

Ingredients: Fruits, Sweetener, Spices

$1200.00

Plastic Bottles (1000)

$900.00

Labels (1000)

$300.00

Total

$2400.00

 

Total Quantity Produced: 1000 Juice Bottles/ 500 Liters 

Time Period : One Month.

 

 Total Production Cost for One Month Period= Fixed Cost + Variable Costs

= $3900.00+$2400.00

=$6300.00

Total Production Costs equates to $6300.00.

Therefore Tropical Sips incurs a total of $6300.00 ec dollars for one month when 500 liters or 1000 500ml juice bottles are produced.

 

At an introductory price of $7.00 each a total revenue of $7000.00 is generated.

=1000 *$7.00= $7000.00

Thus at an introductory price of $7.00, a profit of $700.00 is generated.

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