CASH FLOW AUDRA GAIZIUNAS - MARIA PEARMAN, CPA MARIA PEARMAN, - PowerPoint PPT Presentation

MASTERING CASH FLOW AUDRA GAIZIUNAS - MARIA PEARMAN, CPA

MARIA PEARMAN, CPA Author, Small Brewery Finance PERKINS & CO, PC

AUDRA GAIZIUNAS FRACTIONAL CEO, CFO BREWED FOR HER LEDGER, LLC BA FINANCE COMMITTEE BHRAMARI BREWING COMPANY

AGENDA • Cash Flow Statement Overview • Cash Flow in Detail • Building a Forecast • Q+A

• Cash Flow Statement HOW DO WE MONITOR THE Purpose: HEALTH OF OUR CASH Bridges the Balance POSITION? Sheet and Income • LIQUIDITY RATIOS Statement • EFFICIENCY RATIOS Components: • CONSIDER ADDING DAYS (OR - Operating Activities MONTHS) OF CASH ON HAND TO THE BOTTOM OF YOUR CASH - Investing Activities FLOW - Financing Activities

CASH FLOW RULES Cash income -> Cash inflow Cash loss -> Cash outflow Asset increase -> Cash outflow Asset decrease -> Cash inflow Liability increase -> Cash inflow Liability decrease -> Cash outflow Equity increase -> Cash inflow Equity decrease -> Cash outflow

Operating Activities (Generally short term area of focus)

Month 1 Net Cash Generated By Operating Activities 133,000 Cash Flow from Investing Activities Purchase of Property & Equipment (72,000) Sale of Property & Equipment 6,000 Purchase of Land 0 Net Cash From Investing Activities (66,000) Investing and Financing Activities (Generally Cash Flow from Financing Activities long term area of focus) Line of Credit Borrowing 0 Payment of Dividends 0 Long Term Liability Repay (Principal) (4,830) Net Cash From Financing Activities (4,830) NET CASH FLOW 62,170 Beginning Cash 176,453 Ending Cash 238,623 Months of Cash 5

ABC Brewing ACTIVITIES Cash Flow Statement For the 6 months ended November 30, 2020 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 THAT Cash Flow From Operations Net Income (17,440) (16,812) (16,302) (16,772) (16,752) (14,771) Depreciation & Amortization 3,477 3,477 3,477 3,477 3,477 3,477 Interest Expense 1,170 1,150 1,130 1,109 1,089 1,069 IMPACT (Increases)/Decreases in Accounts Receivable 0 0 0 0 0 0 (Additions)/Depletions of Inventory 0 0 0 0 0 0 Increases/(Decreases) in Accounts Payable 0 0 0 0 0 0 EACH Net Cash From Operating Activities (12,793) (12,185) (11,695) (12,185) (12,185) (10,225) Cash Flow from Investing Activities Purchase of Property & Equipment 0 0 0 0 0 0 SECTION Sale of Property & Equipment 0 0 0 0 0 0 Deposits on Kegs 0 0 0 0 0 0 Net Cash From Investing Activities 0 0 0 0 0 0 --- Cash Flow from Financing Activities Line of Credit Borrowing 0 0 0 0 0 0 Dividends 0 0 0 0 0 0 New Current Borrowing - Additional Loan or Equity 0 0 0 0 0 0 Long Term Liability Repay (Principal Only) (4,830) (4,850) (4,870) (4,891) (4,911) (4,931) BEFORE/AFTER Net Cash From Financing Activities (4,830) (4,850) (4,870) (4,891) (4,911) (4,931) NET CASH FLOW (17,623) (17,035) (16,565) (17,076) (17,096) (15,157) Beginning Cash 37,645 20,022 2,987 (13,578) (30,654) (47,750) REVIEW Ending Cash 20,022 2,987 (13,578) (30,654) (47,750) (62,907) Months of Cash 0 0 0 -1 -1 -1

ABC Brewing Cash Flow Statement For the 6 months ended November 30, 2020 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Cash Flow From Operations Net Income (17,440) (16,812) (16,302) (16,772) (16,752) (14,771) Depreciation & Amortization 3,477 3,477 3,477 3,477 3,477 3,477 Interest Expense 1,170 1,150 1,130 1,109 1,089 1,069 (Increases)/Decreases in Accounts Receivable 0 24,100 500 2,200 0 0 (Additions)/Depletions of Inventory 0 0 0 0 0 0 Increases/(Decreases) in Accounts Payable 11,650 22,300 0 0 0 0 Net Cash From Operating Activities (1,143) 34,215 (11,195) (9,985) (12,185) (10,225) Actions taken with Cash Flow from Investing Activities Purchase of Property & Equipment 0 0 0 0 0 0 Accounts Receivable Sale of Property & Equipment 0 0 0 0 0 0 and Accounts Payable Deposits on Kegs 0 0 0 0 0 0 Net Cash From Investing Activities 0 0 0 0 0 0 Cash Flow from Financing Activities Line of Credit Borrowing 0 0 0 0 0 0 Dividends 0 0 0 0 0 0 New Current Borrowing - Additional Loan or Equity 0 0 0 0 0 0 Long Term Liability Repay (Principal Only) (4,830) (4,850) (4,870) (4,891) (4,911) (4,931) Net Cash From Financing Activities (4,830) (4,850) (4,870) (4,891) (4,911) (4,931) NET CASH FLOW (5,973) 29,365 (16,065) (14,876) (17,096) (15,157) Beginning Cash 37,645 31,672 61,037 44,972 30,096 13,000 Ending Cash 31,672 61,037 44,972 30,096 13,000 (2,157) Months of Cash 1 1 1 1 0 0

ABC Brewing Cash Flow Statement For the 6 months ended November 30, 2020 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Cash Flow From Operations Net Income (17,440) (16,812) (16,302) (16,772) (16,752) (14,771) Depreciation & Amortization 3,477 3,477 3,477 3,477 3,477 3,477 Interest Expense 1,170 1,150 1,130 1,109 1,089 1,069 (Increases)/Decreases in Accounts Receivable 0 24,100 500 2,200 0 0 (Additions)/Depletions of Inventory 5,200 4,400 1,600 0 0 600 Increases/(Decreases) in Accounts Payable 11,650 22,300 0 0 0 0 Net Cash From Operating Activities 4,057 38,615 (9,595) (9,985) (12,185) (9,625) Cash Flow from Investing Activities Actions taken with Purchase of Property & Equipment 0 0 0 0 0 0 Sale of Property & Equipment 0 0 0 0 0 0 Inventory Deposits on Kegs 0 0 0 0 0 0 Net Cash From Investing Activities 0 0 0 0 0 0 Cash Flow from Financing Activities Line of Credit Borrowing 0 0 0 0 0 0 Dividends 0 0 0 0 0 0 New Current Borrowing - Additional Loan or Equity 0 0 0 0 0 0 Long Term Liability Repay (Principal Only) (4,830) (4,850) (4,870) (4,891) (4,911) (4,931) Net Cash From Financing Activities (4,830) (4,850) (4,870) (4,891) (4,911) (4,931) NET CASH FLOW (773) 33,765 (14,465) (14,876) (17,096) (14,557) Beginning Cash 37,645 36,872 70,637 56,172 41,296 24,200 Ending Cash 36,872 70,637 56,172 41,296 24,200 9,643 Months of Cash 1 2 1 1 1 0

ABC Brewing Balance Sheet As of April 30, 2020 Review the Balance Sheet Regularly! Total ASSETS Current Assets Checking 41,669.69 MM Savings 18,256.08 Paypal 549.58 LIABILITIES AND EQUITY Total Bank Accounts $ 60,475.35 Liabilities Accounts Receivable Current Liabilities Accounts Receivable (A/R) 47,713.76 Total Accounts Receivable $ 47,713.76 Accounts Payable Other Current Assets Accounts Payable (A/P) 262,591.35 Employee Cash Advances 1,728.00 Total Accounts Payable $ 262,591.35 Inventory- Finished Goods Inventory- Finished Goods- Kegged 13,142.82 Credit Cards Inventory- Finished Goods- Packaged (Case/Bottle) 10,290.27 Capital One 11,238.99 Total Inventory- Finished Goods $ 23,433.09 Inventory- Merchandise Total Credit Cards $ 11,238.99 10,314.16 Inventory- Packaging 56,465.81 Other Current Liabilities Inventory- Raw Materials 71,409.50 Keg Deposits 6,876.00 Inventory- WIP 9,859.11 Sales and Use Tax Payable 9,082.13 Prepaid Insurance 10,958.55 Prepaid Hop Contract 58,360.13 Total Other Current Liabilities $ 15,958.13 Undeposited Funds 3,028.21 Total Current Liabilities $ 289,788.47 Total Other Current Assets $ 353,745.67 Total Current Assets $ 461,934.78 Long-Term Liabilities Fixed Assets Note Payable 435,300.00 Accumulated Amortization -17,273.64 Total Notes Payable $ 435,300.00 Accumulated Depreciation -180,822.23 Furniture & Fixtures 42,455.76 Total Long-Term Liabilities $ 435,300.00 Leasehold Improvements 342,101.32 Total Liabilities $ 725,088.47 Organizational Cost 29,203.82 Equity Production Equipment 311,283.34 Restaurant Equipment 139,586.69 Member's Equity Startup Costs 152,576.11 Total Member's Equity $ 154,731.39 Vehicles 96,928.31 Retained Earnings 470,278.41 Total Fixed Assets $ 916,039.48 Other Assets Net Income 37,190.87 Security Deposits 7,300.00 Total Equity $ 662,200.67 Total Other Assets $ 7,300.00 TOTAL LIABILITIES AND EQUITY $ 1,387,289.14 TOTAL ASSETS $ 1,385,274.26