MEMORANDUM TO: The Stockholders of Chemalite, Inc
SUBJECT MATTER: 2003 Economic Performance of Chemalite, Incorporation
The fastened report features the Businesses financial actions and outcomes for the period ending January 31, 2003.
Executive Brief summary
•For the six months finishing December 23, 2003 Chemalite had sales of $754, 500 with $69, five-hundred uncollected by year end. •Ended the year 2003 with a funds balance of $113, 1000
•Net income for 2003 $58, 750
Here i will discuss an assessment of each in the three main financial studies: statement of money flows, income statement and balance sheet.
Statement of Cash Moves
Prior to start operations in July 2003 the following cash inflows/outflows were completed: •Cash Inflows:
oStock issued -- 375, 000 shares at $1. 00 a share for a total cash inflow of $375, 000 •Cash outflows:
oIncorporation costs of $7500
oMachinery costs of $62, five-hundred
oInventory costs of $75, 000
Resulting in a net cash outlay of $145, 000
From your period of Come july 1st 1 to December thirty-one, 2003 the subsequent cash inflows/outflows occurred: •Cash Inflows:
oCash collected from Customers of $685, 500
oInventory costs of $175, 000
oAdvertising costs of $22, five-hundred
oManufacturing costs of $350, 000
oAdmin costs of $80, 1000
oEquipment costs of $150, 000
oInterest on loan $750
oPrototype cost of $23, 750
Resulting in a net cash pay out of $802, 000
During your stay on island was $947, 000 in cash outlays throughout the year 2003 to get Chemalite founded and operating, at 12 , 31, the year 2003 Chemalite had a cash equilibrium of $113, 000. Gear costs be the cause of $212, 500 of the $947, 000 in cash items. It would be predicted going forward this kind of cost can be significantly lowered to routine service costs for the current tools. Manufacturing costs of $350, 000 look like a bit for the high area, but as functions continue the manufacturing method could be stream lined to minimize costs.
•Total earnings of $754, 500
•Cost of goods sold $545, 000...