Problem:
Jack is an entrepreneur and owns several small business. However he is bad with numbers and would like to visualize his money as cash flow diagrams that represents a summary of each small business. Additionally he would like advice on how his business are performing. Below are costs and revenues for the past five years each has been open.
Required:
Question 1) Construct cash flow diagrams for each business. Use the analysis techniques to compare the business and provide Jack with some useful feedback.
|
Business A
|
|
Year
|
Income
|
Expenses
|
|
2007
|
-
|
$ 900,000
|
|
2008
|
$ 500,000
|
$ 125,000
|
|
2009
|
$ 200,000
|
$ 125,000
|
|
2010
|
$ 300,000
|
$ 125,000
|
|
2011
|
$ 450,000
|
$ 150,000
|
|
2012
|
$ 425,000
|
$ 150,000
|
|
Business B
|
|
Year
|
Income
|
Expenses
|
|
2007
|
-
|
$ 550,000
|
|
2008
|
$ 200,000
|
$ 105,000
|
|
2009
|
$ 200,000
|
$ 105,000
|
|
2010
|
$ 200,000
|
$ 105,000
|
|
2011
|
$ 200,000
|
$ 105,000
|
|
2012
|
$ 200,000
|
$ 105,000
|
|
Business C
|
|
Year
|
Income
|
Expenses
|
|
2007
|
-
|
$ 75,000
|
|
2008
|
$ 75,000
|
$ 100,000
|
|
2009
|
$ 50,000
|
$ 100,000
|
|
2010
|
$ 40,000
|
$ 200,000
|
|
2011
|
$ 25,000
|
$ 25,000
|
|
2012
|
$ 15,000
|
$ 25,000
|
Solve the given numerical problem and illustrate step by step calculation