Question

The business I am opening is Spirulina. Spirulina is a micro-algae and as such has been growing naturally in our environment for millions of years, it is a tough plant able to withstand harsh growing conditions, in fact, the micro-algae cell never really dies it goes dormant when weather conditions are not favorable, and as soon as these change and the environment is once again suitable for growth, spirulina begins growing and reproducing again. Naturally growing spirulina can be found in high alkaline lakes and in general, it is said that where flamingos are, spirulina is sure to be found. It is a type of cyanobacteria, which is a family of single-celled microbes that are often referred to as blue-green algae. Just like plants, cyanobacteria can produce energy from sunlight via a process called photosynthesis (Ebène, 2011-2016). The main reason that I am interested in such a product is that the product benefits people’s health which I am going to mention and cover in the rest of my report.

Question

Using your Business idea. Create a sample cashflow sheet that would be specific to your business. You can create a monthly statement that will culminate to an annual total.

Answer 1

Rough monthly cash flow statement for the dummy problem is mentioned below. I assume that you belong to a standard middle class family in India. In such a case you net salary would be around Rs 40,000. Assuming this I have prepared the cash flow statement for your model question.

                                                      Cash Flow Statement (Monthly)

Income

Salary- Rs 40,000

Sales of spirulina- Rs 30,000

Expenses

Spirulina seeds- Rs 6000

Disinfectants- Rs 3000

Salary paid to workers to work on the project- Rs 15,000

Storage house monthly Rental- Rs 19,000

Processing plant rental- Rs 20,000

Total Income= Rs 70,000 (monthly)

Total Expenses= Rs 63,000 (monthly)

Net Gain = Rs 7000 ( monthly)

Yearly net gain= Rs 84,000