Balance Sheet and Cash Essay

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

•Cash Outflows:

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.

Income Affirmation

•Total earnings of $754, 500

•Cost of goods sold $545, 000...