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Vigyan Ashram Pabal
Cashflow Example
What is cashflow
Example?
 I receive an order of preparing 1 kg mango pickle in 150
rupees on May 1st
 I want to give it to customer after 10 days ie 10th May
 In the meantime, I purchase raw materials for making
Mango Pickle
 I spend 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
Cashflow example
 My cashflow from May 1 to 10th Maywill be
Day May 1st 2013 May 10th 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 7th May 2013, I
receive order of 10 kgs to deliver it till 31st may 2013
Calculate the cashflow statement in month of may

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Cash flow example

  • 2. Cashflow Example What is cashflow Example?  I receive an order of preparing 1 kg mango pickle in 150 rupees on May 1st  I want to give it to customer after 10 days ie 10th May  In the meantime, I purchase raw materials for making Mango Pickle  I spend 100 rupees on raw materials  I will receive 150 rupees after 10 days from today  So How will I manage the 10 days?
  • 3. 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
  • 4. Cashflow example  My cashflow from May 1 to 10th Maywill be Day May 1st 2013 May 10th 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
  • 5. 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 7th May 2013, I receive order of 10 kgs to deliver it till 31st may 2013 Calculate the cashflow statement in month of may