The The Stockholders of Chemalite of Chemalite
- Pages: 2
- Word count: 359
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The attached report highlights the Corporation’s financial activities and results for the period ending December 31, 2003.
•For the six months ending December 31, 2003 Chemalite had sales of $754,500 with $69,500 uncollected at year end.
•Ended 2003 with a cash balance of $113,000
•Net income for 2003 $58,750
The following is an assessment of each of the three major financial reports: statement of cash flows, income statement and balance sheet.
Statement of Cash Flows
Prior to beginning operations in July 2003 the following cash inflows/outflows were completed:
•Stock issued – 375,000 shares at $1.00 a share for a total cash inflow of $375,000
•Incorporation costs of $7500
•Machinery costs of $62,500
•Inventory costs of $75,000
•Resulting in a net cash outlay of $145,000
From the period of July 1 to December 31, 2003 the following cash inflows/outflows occurred:
•Cash Inflows:Cash collected from Customers of $685,000
•Inventory costs of $175,000
•Advertising costs of $22,500
•Manufacturing costs of $350,000
•Admin costs of $80,000
•Equipment costs of $150,000
•Interest on loan $750
•Prototype cost of $23,750
oResulting in a net cash outlay of $802,000
While there was $947,000 in cash outlays throughout 2003 to get Chemalite established and running, at December 31, 2003 Chemalite had a cash balance of $113,000. Equipment costs account for $212,500 of the $947,000 in cash outlays. It would be expected going forward this cost would be significantly reduced to maintenance costs on the current equipment. Manufacturing costs of $350,000 appear to be a bit on the high side, but as operations continue the manufacturing process could be stream lined to reduce costs.
•Total revenue of $754,500
•Cost of goods sold $545,000
•Gross income (before operating expenses) $209,500
•Operating Expenses $150,750
•Resulting in a net income of $58,750
Chemalite ended 2003 with a net income of $58,750 which is approximately eight percent of sales. Overall an impressive margin when considering the immaturity of the company.
•Total Assets of $558,750
•Total Liabilities of $0
•Total Stockholders Equity of $558,750
Chemalite has $558,750 in total assets with $113,000 of that being cash. As of December 31, 2003 Chemalite does not have any liabilities, meaning it does have any debt.