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Skyline Inc. was a start-up venture on healthy vegetable drinks. Fill out the table below and answer the following questions. - The price was $10
Skyline Inc. was a start-up venture on healthy vegetable drinks. Fill out the table below and answer the following questions. - The price was $10 per bag of drinks. Market research suggested that 1,000 customers in the first year will buy 10 bags of the drinks per customer. The demand is projected to grow 20% annually. - Skyline can supply 5,000 bags in year I and to 15,000 bags in year 2 . - The cost of goods sold (COGS) was \$3 and \$2 per bag in year 1 and year 2, respectively. Skyline planned to hire one employee with a salary of $50,000 per year (no salary for the founders). - Their suppliers required to be paid within 60 days, while customers pay on average 30 days after delivery (assume a year has 360 days). a) What is the gross margin for Year 1 and Y ear 2 respectively? b) What is the free cash flow for Year 1 and Year 2 respectively
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