Highland Malt

1. Price per barrel = $10,000
2. Each barrel produces 175 bottles of 40 ounces (approx.. 1.2 liters)
3. Approx. price per bottle = $60 (lower than other notable premium brands)
4. Collectors pays for annual storage costs over a 12 year period
5. Spencers handles Highlands customer orders for 10% commission on each order
6. Customers could issue a refund without 180 days of order
7. For each case $10,000 , Spencers keeps its 10% commission on each order regardless of a full refund of $10,000 to customers by Highland
8. Highland paid a fee of $50,000 to Adger (Master Distiller) in 2019, and second fee of $30,000 due and payable to him in 2020 for his continued service.
9. Plan was to produce a batch of 50 barrels every 6 months starting in January 2018, and increase production in 2019, but due to skilled shortage, high material expenses, and rising overhead costs, Highland was increasingly paying more for production of whiskey batches.
10. Incorporated in January 2018- companys stock sold for $750,000. In addition to this equity, they borrow a $50,000 two year bank loan at 10% interest for short-term cash needs. The term loan was backed by a personal guarantee, extended in Jan 2019 and regular payments consisting of interest were due on the 25-th of each month. Principal did not have to be repaid.
11. Highland signed a 5-year lease, for $7,500 per month, beginning January 2019. Highland has several other overheads
12. Production began in 2018 - with two batches of 50 barrels. Sales started in 2019 and Highland ramped production to two batches of 100 barrels to adjust for sale. Of the 300 barrels produced, a total of 250 barrels were sold. Finished barrels were stored in the Highland warehouse. By year-end, Spencer's had not remitted payment for 10 barrels purchased in 20119. No barrels were returned from customers by year-end, however, 10 barrels were returned in early 2020. returned within the 180 day timeframe of refund policy

Highland Malt Annual Fixed Cost Schedule (in US $)

Other Expense Amount Office and admin $10,000

Salaries and wages $130,000

Repairs and Maintenance $25,000

Supplies $25,000

Utilities $40,000

Total expense $230,000

Highland Malt inc. Production schedule and cost (in us$)

Batch number Date Unit(barrels) Cost per Unit Total Cost

1 Jan 2018 50 $6,000 $3000,000

2 Jul 2018 50 $6,500 $325,000

3 Jan 2019 100 $7,000 $700,000 4 July 2019 100 $7,500 $ 750,000

Total $2,075,000

Highland Malt Inc. statistics for 2019

Amount

Barrels produced 200

Barrels in opening inventory 100

Barrels ordered 250

Barrels in closing inventory 50

Barrels returned 0

Barrels for which cash was received from Spencers Spirit 240

Barrels sold but not paid by Spencers Spirits 10

I need calculation to be done to get a financial statement numbers