Cash Flow Example Vigyan Ashram Pabal Cash flow

Cash Flow Example Vigyan Ashram Pabal

Cash flow Example What is cash flow? Example : • I have received an order of preparing 1 kg mango pickle in 150 rupees on May 1 st • I want to give it to customer after 10 days ie 10 th May • In the meantime, I purchase raw materials for making Mango Pickle • I spent 100 rupees on raw materials • I will receive 150 rupees after 10 days from today • So How will I manage the 10 days?

Cash Flow Example • • • I order the raw materials for 100 rupees I have 500 rupees with me as initial investment I start manufacturing Raw material cost is 100 rupees After 10 days, I deliver the pickle to customer and get 150 rupees

Cash flow example • My cash flow from May 1 to 10 th May will be : Day May 1 st 2013 May 10 th 2013 Expenses Order for raw materials Raw Mangoes Salt Oil Spices etc 100 rupees Delivery of pickle Revenues Initial Investment 500 rupees Sold the pickle Balance 500 – 100 = 400 rupees 400 + 150 = 550 Rupees

Cash flow example The previous example was a simple cash flow statement Assignment Considering the example discussed earlier I am already manufacturing 1 kg pickle and on 7 th May 2013, I have received order of 10 kgs to deliver it till 31 st may 2013 Calculate the cash flow statement in month of may