Calculate the company's operating cash flow CFops for the financial year. Ipana Oy is a brewing company that was founded in 2011 and focuses on specialty beers. The company sells beer mainly to restaurants and wholesalers, and is currently focusing on increasing direct sales to customers.In addition, the company rents a small office space at a fairly moderate price (€3,200/month). The company produces the successful "Ipana IPA" beer, the selling price of which varies depending on the sales channel. The company prefers domestic raw materials, but most of
Question：Calculate the company's operating cash flow CFops for the financial year.
Ipana Oy is a brewing company that was founded in 2011 and focuses on specialty beers. The company sells beer mainly to restaurants and wholesalers, and is currently focusing on increasing direct sales to customers.In addition, the company rents a small office space at a fairly moderate price (€3,200/month). The company produces the successful "Ipana IPA" beer, the selling price of which varies depending on the sales channel. The company prefers domestic raw materials, but most of the hops come from international suppliers. Raw material costs have remained at the same level in recent years, around €0.85/l. Although demand has grown over the years as a result of successful sales and marketing, the company's management is concerned that the company's turnover is dependent on a single product.
Let's examine the financial period 1 January 2020-31 December 2020. At the beginning of the accounting period, Ipana oy has 200,000 liters of raw material in stock. It can be assumed that 1 liter of raw material can be used to produce 1 liter of Ipana IPA. In the finished product warehouse, on the other hand, 150,000 liters of Ipana IPA are waiting for sale. The opening balance sheet for the fiscal year (January 1, 2020) looks like this:
Assets (€)
Permanent assets
- Fixed assets 15000000
Current assets
- Stocks of raw material 170000
- Finished products 127500
- Accounts receivable 242000
- Disposable assets 179000
Liabilities (€)
Equity
- Share capital 9733500
- Accumulated results 0
- Profit or loss for the financial year 0
Current liabilities
- Long-term loans 5100000
- Maturing loans 800000
- Accounts payable 85000
During the accounting period, Ipana oy buys 10100000 liters of raw material at a price of €0.85/l. During the financial year, the company produces a total of 10000000 liters of Ipana IPA, and it manages to sell 10000000 liters of Ipana IPA at an average selling price of €2.42/liter. The other costs of the business are €11110000 in total, of which the company's personnel costs are €4,444,000 and marketing costs are €2,222,000. At the end of the financial year, the company has trade receivables for €222640 and accounts payable for €97750. The company pays the due loans at the end of the financial year, and at the same time takes out a new loan for a total of €650,000. There is a total of €600,000 in loans due in the next fiscal year. The financiers charge an average 6% interest on the loan capital. The interest rate also corresponds to the expected return on debt, while the expected
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