Based on the fictional financial statement below, produce an equal likely cash flow statement and balance sheet.

Case Study:

Gorgos Arabica Limited is a well-established non-alcoholic beverage Company mainly dealing with ready to drink coffee and has its operations in the United States. The underlying Company name comprises of two names, Gorgos which is a Greek word meaning quick and Arabica which is an English word for an indigenous species of coffee. The two names pertinent to this coffee brewing Company carries an important message that the company offer quick services and indigenous coffee is brewed. The two names offer a unique brand that customers can easily identify with thus building brand equity.

The non-alcoholic beverage markets remain one of the most promising markets within most urban cities especially within the developed and emerging economies. Of the beverage products, Coffee is the most popular of the variety that is on offer. Why coffee? As caffeine, coffee outstandingly supersedes the other non-alcoholic beverages as a product that most consumers find appealing to be associated with compared to the other products. Such sense of belonging makes coffee to be regarded as the leading caffeine beverage associated with vast members of the middle class. Smiths Coffee Bar as a start-up proves to be a brilliant idea given the coffee market as a beverage within the society. With an expanding market and continued assimilation of new customers converting to the coffee habit, Smiths Bar appears as a well-informed idea at the right time. All that is required to make the planned structure that shall provide the business model with strategies that would ensure market penetration from the market, supply, and consumers competitive point of view. The paper as such focuses on the preparation of a strategic business plan for the Smiths Coffee Bar that would see to it that the business turns top a success. The paper closely considers the market elements that uniquely form the collective success aspects including the market demographics, consumers income, competition, and other varied factors that delimit the forces of demand and supply.

Business Startup Worksheet	(Dollars $)
Percentage Ownership	68,000.00
Other Investors	32,000.00
Total Investment	100,000.00
bank Loans	45,000.00
other sources of Capital	25,000.00
Total Investment in Startup	270,000.00
Startup Expenses
Building /real estate	10,000
Leasehold improvements	2,500
Advertisement	5,000
Signage	1,000
Capital Equipment	8,000
Other /AdditionalCategories
Administration fees	15,000
opening inventory	5,000
promotional expenses	2,000
contigency Fund	6,500
Working Capital	$75000
Total Startup Expenses	$ 130000

		FINANCIALS
	GORGOS ARABICA LTD INCOME STATEMENT AT $7
		For current year 2017
	R &D		Before launch		Suggested retail price=$7
	Investigation costs		$260,000		Less retail discount=$2
	Development costs		$760,000		Price to retail=$5
	Discount rate per yr		5.00%		Less Wholesale discount=$3
					Wholesale Selling price=$4
Annual costs and sales			2016	2017	2018	2019	2020
Manufacturers unit price			$3	$3	$3	$3	$3
Variable unit cost			$2	$1	$1	$2	$1
Fixed cost p.a			$2,100,000	$2,100,000	$2,100,000	$2,100,000	$2,100,000
Retail sales expected			$5,260,000	$5,750,000	$6,180,000	$6,800,000	$7,300,000
Industry sales p.a.			$104,900,000	$114,900,000	$123,500,000	$134,600,000	$145,000,000
Fresh Inc market share			2.10%	4.20%	7.00%	8.10%	11.00%
Fresh Inc sales p.a.			$21,000,000	$46,000,000	$74,000,000	$110,000,000	$150,000,000
Income Statement		Before launch	2016	2017	2018	2019	2020
Sales			$6,300,000	$13,800,000	$22,180,000	$32,000,000	$43,000,000
Variable cost			$3,200,000	$6,500,000	$10,000,000	$14,000,000	$17,000,000
Fixed cost		$1,500,000	$2,100,000	$2,100,000	$2,100,000	$2,100,000	$2,100,000
Profits		($1,500,000)	$1,200,000	$5,400,000	$11,000,000	$16,000,000	$24,000,000
cumulative profits			$200,000	$5,500,000	$16,000,000	$32,000,000	$56,000,000
Net present value			$35,400,000
			GORGOS ARABICA LTD INCOME STATEMENT AT $6
Research and development			2016 Before launch
					Suggested cost=$6.50
Investigation costs			$260,000		Less retail discount=$1.50
Development costs			$760,000		Retail price=$5
Discount rate per annum			1.00%		Less Wholesale discount=$2.50
					Selling price=$4