1. Prepare a Financial Plan based on the following information in the Appendix:

Online Company best pet food wants to prepare its Financial plan for the next 6 months in 2020.

Revenues: based on last year estimation is for January to March, per month USD 15,000 and for Aprli June, per month USD 20,000. The company sells 50% via online payment tools and receives the money immediately on their account, while the other 50% are sold via invoices payments are expected in the following month.

Cost of goods sold: 60 % of the revenues for each month supplier insists on payments before delivery of the goods therefore payments are in the same month as the revenues occurs.

All following costs are paid in the same months as it occurs: IT maintenance costs: monthly contract with USD 1,000

Company plans to invest in their IT infrastructure: in February with USD 2,000 and in May with another USD 3,000

Personnel costs per month: USD 1,500 Other costs per month: USD 500 The Company has USD 5,500 on the bank account as of 1. January 2020

Financial Plan "best pet food"
	Jan	Feb	Mar	Apr	May	June	TOTAL
Cash inflows
payments clients
Total inflows
Cash outflows
Cost of good sold
IT maintenance
Invest
Personell
other costs
Total outflows
NET CASH FLOW
Opening balance
Closing balance

2. Please explain the calculation of the Cash cycle with its 3 elements and provide for each element an example, what a company could think about for its improvement.

3. The Cash Flow statement provides an overview about how the Company uses its financial resources and where those are coming from for a certain period of time. Please explain shorty the 3 different areas in a Cashflow statement.