THE PIZZA FOOD TRUCK

Kindly navigate to the next tab to start the exercise. The details of each mo
 THE PIZZA FOOD TRUCK

o start the exercise. The details of each month is present on a separate tab.
 COMPANY LAUNCH ON DECEMBER 20th

On December 20th, I invest my savings in a new business:

Shareholder investment: $5,000
On December 22nd, I visit a supermarket to buy the ingredients I need:
Food supply: $750
I enjoy a nice Christmas break for now. I'm excited to begin operations on January 1st!

CASH FLOW STATEMENT

Cash beginning $0
Cash in
Share capital $5,000
Cash out $750
Food supply
Cash end $4,250

BALANCE SHEET END OF THE MONTH

ASSETS LIABILITIES & EQUITY

Inventory Share capital $5,000
Cash $4,250
Total assets Total liabilities & equity $5,000
 JANUARY

I rent a truck: $2,500

I sell: 500 pizzas
The selling price is: $10 /pizza (all customers pay in cash)
Besides the rental cost of the truck, I bear the following additional expenses:
Material cost: $1.50 /pizza (food bought in December)
Water & Electricity: $0.50 /pizza

PRODUCTION COST
Material cost
Water & electricity
Total

INCOME STATEMENT CASH FLOW STATEMENT

Sales revenue Cash beginning $4,250
- Cost of pizzas sold Cash in
- Truck rental cost Sales in cash $5,000
Monthly profit $1,500 Cash out
Water & electricity $1,000
Truck rental cost $2,500
Cash end $6,500

BALANCE SHEET END OF THE MONTH

ASSETS LIABILITIES & EQUITY
Inventory Share capital $5,000
Cash $6,500 Profit January $1,500
Total assets Total liabilities & equity
 FEBRUARY

I rent a truck: $2,500

I go back to the supermarket to purchase some more food:
Food supply: $5,000
I sell: 1 000 pizzas to individual customers who all pay in cash
I closed a deal for: 2 000 pizzas with a neighbouring company (payment terms: 30 days)
The selling price is: $10 /pizza for all customers (individuals & the neighbouring company)
Besides the rental cost of the truck, I bear the following additional expenses:
Material cost: $1.50 /pizza (food bought at the supermarket earlier this month)
Water & electricity: $0.50 /pizza
Part-time employee: $1,000

PRODUCTION COST
Material cost $1.50 /pizza
Water & electricity $0.50 /pizza
Total
Mess=70k,

INCOME STATEMENT CASH FLOW STATEMENT

Sales revenue $30,000 Cash beginning $6,500
- Cost of pizzas sold $6,000 Cash in
- Part-time employee $1,000 Sales in cash $10,000
- Truck rental cost $2,500 Cash out
Monthly profit $20,500 Food supply $5,000
Water & electricity $1,500
Part-time employee $1,000
Truck rental cost $2,500
Cash end $6,500

BALANCE SHEET END OF THE MONTH

ASSETS LIABILITIES & EQUITY
Inventory $500 Share capital $5,000
Accounts receivable $20,000 Retained earnings $1,500
Cash $6,500 Profit February $20,500
Total assets $27,000 Total liabilities & equity $27,000
 MARCH

I buy the truck for: $36,000 (to be paid half in March and half in April)
I will use the truck for: 3 years in total
I visit the supermarket once more to purchase food:
Food supply: $5,000
I sell: 1 000 pizzas to individual customers who all pay in cash
Plus: 2 000 pizzas to a neighbouring company (payment terms: 30 days)
The selling price will be: $10 /pizza for all customers (individuals & the neighbouring company)
I bear the following additional expenses:
Material cost: $1.50 /pizza (past inventory & food just bought at the supermarket)
Water & electricity: $0.50 /pizza
Part-time employee: $1,000
Truck insurance: $300

PRODUCTION COST
Material cost $1.50 /pizza
Water & electricity $2.00 /pizza
Total

INCOME STATEMENT CASH FLOW STATEMENT

Sales revenue $30,000 Cash beginning $6,500
- Cost of pizzas sold $6,000 Cash in
- Part-time employee $1,000 Acc. Receivable collection $20,000
- Truck insurance $300 Sales in cash $10,000
- Truck depreciation $1,000 Cash out
Monthly profit $21,700 Truck purchase $18,000
Food supply $5,000
Water & electricity $1,500
Part-time employee $1,000
Truck insurance $300
Cash end $10,700

BALANCE SHEET END OF THE MONTH

ASSETS LIABILITIES & EQUITY
Gross truck value $36,000 Share capital $5,000
- Acumulated depreciation $1,000 +Retained earnings
Net truck value $35,000 +Monthly profit $21,700
Inventory $1,000 Owners' equity $48,700
Accounts receivable $20,000
Cash $10,700 Debt to truck supplier $18,000
Total assets $66,700 Total liabilities & equity $66,700
 APRIL

I visit the supermarket to purchase food:

Food supply: $5,000
I sell: 4 000 pizzas to a neighbouring company
As of this month, new conditions apply when I'm doing business with this corporate customer:
Selling price: $10 /pizza (unchanged)
Payment terms: 60 days
I still use the truck bought in March to I run the operations and bear the following additional expenses:
Material cost: $1.50 /pizza
Water & electricity: $0.50 /pizza
Part-time employee: $1,000
Truck insurance: $300

PRODUCTION COST
Material cost $6000.00 /pizza
Water & electricity $2000.00 /pizza
Total $2.00 /pizza

INCOME STATEMENT CASH FLOW STATEMENT

Sales revenue $40,000 Cash beginning $10,700
- Cost of pizzas sold $8,000 Cash in
- Part-time employee $1,000 Acc. Receivable collection $20,000
- Truck insurance $300 Sales in cash
- Truck depreciation $1,000 Cash out
Monthly profit $29,700 Truck purchase (end) $18,000
Food supply $5,000
Water & electricity $2,000
Part-time employee $1,000
Truck insurance $300
Cash end $4,400

BALANCE SHEET END OF THE MONTH

ASSETS LIABILITIES & EQUITY
Gross truck value $36,000 Share capital $5,000
- Acumulated depreciation $2,000 +Retained earnings $43,700
Net truck value $34,000 +Monthly profit $29,700
Inventory $0 Owners' equity
Accounts receivable $40,000
Cash $4,400 Debt to truck supplier
Total assets $78,400 Total liabilities & equity
 APRIL

I visit the supermarket to purchase food:

Food
supply: $5,000

I sell: 4 000 pizzasto a neighbouring company

As of this month, new conditions apply when I'm doing business with this corporate cu
Selling price: $10 /pizza (unchanged)
Payment terms: 60 days
I still use the truck bought in March to I run the operations and bear the following add
Material$1.50 /pizza
cost:
Water &
$0.50 /pizza
electricity:
Part-time
employee: $1,000

Truck
insurance: $300

PRODUCTION COST

Material cos00.00 /pizza

Water & elect
00.00 /pizza
Total $2.00 /pizza

INCOME STATEMENT CASH FLOW STATEMENT

Sales revenu$40000 Cash beginn$10,700

- Cost of piz $16000 Cash in

- Part-time $5,000 Acc. Receiv $20,000
- Truck insu $8000
- Truck depr $1,000
Monthly prof$29,700
BALANCE SHEET END OF THE MONTH
ASSETS
Gross truc $36,000
- Acumula $2,000
Net truck va$34,000
Inventory $0
Accounts rec$40,000
Cash $4,400
Total assets $78,400
Sales in cash
Cash out
Truck purc$18,000
Food suppl$5,000
Water & el$2,000
Part-time $1,000
Truck insu $300
Cash end $4,400
LIABILITIES & EQUITY
Share capit$5,000
+Retained $43,700
+Monthly p$29,700
Owners' equity
Debt to truck supplier
Total liabilities & equity
with this corporate customer:

ear the following additional expenses:

 APRIL

intial investmenet - gas utensil 1lakh

raw material 30k
rent 80k

Material cost: $1.50 /pizza

Water & electricity: $0.50 /pizza
Part-time employee: $1,000
Truck insurance: $300

PRODUCTION COST

Material cost $60.00 /pizza

Water & electricity+labour $0.00 /pizza
Total $60.00 /pizza

INCOME STATEMENT

Sales revenue $240,000

- Cost of pizzas sold $36000

- Part-time employee $35000
rent $80000
rent plus gas utensil depreciation $5,000
Err:509
Monthly profit $2.4-1.56=84k
 BALANCE SHEET END OF 2 MONTH

ASSETS
Gross truck value $100,000
- Acumulated depreciation $10,000
Net truck value $90,000
Inventory $0
Accounts receivable
Cash $240000
Total assets $3,30,000
APRIL roti/paratha-5,rice-5,sabji-30,dal
VIP Thali- roti/paratha-5,rice-5,s

custom thali

subscription model, take

orders to save wastage
first day half cost:
VIP Customer price -*20*40*150=96000
Customers-*20*100*120=240,000
cost od=f pizza=

CASH FLOW STATEMENT

Cash beginning $10,700

Cash in
Acc. Receivable collection $20,000
Sales in cash

Cash out
Truck purchase (end) $18,000
 Food supply $5,000
Water & electricity $2,000
Part-time employee $1,000
Truck insurance $300

Cash end $4,400

EET END OF 2 MONTH

LIABILITIES & EQUITY

Share capital $2.5lakh
+Retained earnings $
+Monthly profit $84k
Owners' equity

Debt to truck supplier

Total liabilities & equity
ti/paratha-5,rice-5,sabji-30,dal-10,dessert-10=60
Thali- roti/paratha-5,rice-5,sabji-30,dal-10,dessert-10=60
mini large thali

tom thali