Gotham Meals on Wheels

Submitted by :Iron Man

Balance Sheet
Gotham Meals on Wheels
Balance sheet as of March 31
Assets

Liabilities and Equity

Cash : $4675
Accounts Receivable : $19250
Inventory : $8750
Total Assets = $32675

Contributed Capital : $25000

Net Assets : 0
Equity : $7675
Total liabilities and Equity : $32675

Cash Flow Statement

BB + Additions Reductions = EB
Nov : 19050 + 0 4500 = 14500
Dec : 14500 + 3575 5100 = 12975
Jan : 12975 + 4950 7250 = 10675
Feb : 10675 + 5500 9000 = 7175
Mar : 7175 + 8250 10750 = 4675
Spread Sheet attached for more reference
Microsoft Excel
Worksheet

Problems?
If we look at the cash flow statement, we can clearly see that the
organization is leaking money till June with very little of cash in
hand.
No cash in hand is a major problem for any organization as any
uneven demand of products will not been able to satisfied by the
company
The revenue generated is received in the 3rd month which is making
it difficult for the organization to scale more.
The problem appears in June when we have only $2675 cash in
hand and we have to pay $2000 for rent and

Advice?
Try to reduce the turn around time for collection of
money
Try to send the bills in a few days of the sale.
Try to reduce the limit of payment of consumer
from 30 days to less number of days.
If possible try to reduce the production cost or
increase selling price.

Thank You