Question

Analyze the following financial statement. What can this company do to improve revenue streams?

Lola Inc 3-Year Cash Flow For the Year Ending Cash at Beginning of Year Cash at End of Year 12131/2019 1,984,521 4,680,563 121312020 1213112021 7,181,709 9,532,305 7,181709 Operations Cash receipts from 2019 2020 2021 146,14 Customers Other operations 2,965,821 1,134,179 1,203,138 1156,863 Cash paid for tory purchases 960,400) 941,192 76,492 402,000) 13,500) 980,000 (83,000 418,000 12,500 79,680 410,000 General Wage expenses Interest Income taxes operating and administrative e Net Cash Flow from Operations 2,883,296 2,680,990 2,568,300 Investing Activities Cash receipts from Cash paid for Net Cash Flow from Investing Activities Financing Activities Sale of property and equipment 23,600 26,960 33,600 Purchase of property and equipment 0001 (51,400 (28,540) (51,400) Cash receipts from 530,450 515,000 500,000 646,304 (135,854) (151,304) (166,304) 2,696,042 2,501,146 2,350,596 Issuance of stock Cash paid for Repayment of loans 646,304] Net Cash Flow from Financing Activities Net Cash Flow

Answer 1

Note: Since qualitative business information of the company is provided, we shall look at general means of improving revenue streams for the company. These means can be applied to majority of the organisations.

1. Marketing and Branding expenses - This directly helps in increasing the number of customers of the company and can in turn increase revenue streams of the company.

2. Increase prices - This method can have a negative effect since customers could move to competing products, however, if prices are raised along with improved quality and customer services and marketing strategies, this could overall lead to increase revenue of the company.

3. Improve working capital cycle - Though this is not a revenue increasing strategy, the intention of this method is to increase cash flows incoming from customers of the company which can be quickly deployed into generating future sales, thus, improving the entire working capital cycle of the company.