Blog Post by Yari
December 7th, 2025
If finance ever felt intimidating, I want you to imagine something softer. Not Wall Street, a $33,000 USD Bloomberg terminal, or a boardroom humming with tension.
Imagine instead:
A tiny lavender painted flower shop on the quiet cobblestone streets of the West Village. Soft piano playing, the door chiming as someone walks in. Lavender and roses lined up in mason jars, peonies and dimly lit candles hanging from the walls, freshly waxed seals on the invitations.
Finance is less scary when it feels like flowers, because at its core, finance is simply the story of how something grows, survives, expands, and eventually blooms. A flower shop is the perfect metaphor for the three financial statements. Not just because it is cute (it is super cute though) but because it reveals something true: business is like a garden. The numbers are the sunlight, water, and soil conditions that help it thrive.
The Income Statement: “Did My Roses Make Money… This Month?”
Your cutesy Lavende & Rose shop sells handcrafted bouquets, flower of the month subscriptions, and seasonal arrangements. Everyone loves your shop. The roses smell like a dream, the lavender is edible, which is perfect for baking or making lavender lemonade in the summers. Lavande is French for lavender, by the way.
But what does this have to do with an income statement? Well:
An income statement answers one simple question: “Are the rose bouquets paying the rent, or am I paying for the privilege of giving roses away in the West Village?”
Revenue: is the joy of every bouquet sold, every wedding order, and every Valentine’s Day chaos.
Cost of Goods Sold: That is everything it takes to bring those roses to life: wholesale flowers, ribbons, custom ceramic vases, the soft lavender packaging (we must stay on theme), and yes, even the delivery materials.
Lavende & Rose is a mirror reflecting beauty and resilience.
Here is what the income statement calculations mean:
- The gross profit is the financial equivalent of blooming. Revenue minus direct costs equals gross profit.
- The operating expenses include rent, utilities, website hosting, Shopify fees, staff wages, marketing, and the espresso machine you definitely did not need but absolutely deserved.
- The operating profit is what is left after you survive the month.
- The net income is the moment you exhale and say: “Yes. This works. I am building something real. My lavender shop will become a classic in the neighborhood.”
Here’s the monthly Income Statement (“How much did the shop earn this month?”) breakdown of as of April 30th, 2025 (USD):
| Line Item | Amount | Calculation Breakdown |
| Revenue | $12,500 | Total sales from bouquets, events, subscriptions |
| Cost of Goods Sold (COGS) | $4,800 | Flowers ($3,200) + Ribbons & Vases ($900) + Packaging ($300) + Delivery Materials ($400) |
| Gross Profit | $7,700 | Revenue – COGS |
| Operating Expenses | $5,300 | Rent ($2,400) + Wages ($1,800) + Utilities ($300) + Shopify/Website ($150) + Marketing ($400) + Miscellaneous ($250) |
| Operating Income | $2,400 | Gross Profit – Operating Expenses |
| Interest Expense | $120 | Loan Balance ($3,500) × 0.0343 monthly rate |
| Earnings Before Tax (EBT) | $2,280 | Operating Income – Interest Expense |
| Tax Expense (20%) | $456 | $2,280 x 0.20 |
| Net Income | $1,824 | EBT – Tax Expense |
The Balance Sheet: “What Does My Flower Shop Own and Owe?”
If the income statement is the flower shop’s diary, then the balance sheet is its inventory of strengths.
It tells you:
- What you own: cash in the register, leftover rose inventory, tools, shelves, point-of-sale equipment, prepaid rent, and the cute lavender delivery scooter.
- What you owe: loans, credit card balances, and any active supplier invoices.
- The equity is the magic. This is your stake, ownership, and belief materialized into value. Your flower shop, like you, must stand on stable roots. It is calculated as liabilities plus equity equals assets.
Here’s the monthly Balance Statement (“What the shop owns vs. what it owes”) breakdown of as of April 30th, 2025 (USD):
| Category | Amount | Calculation |
| Assets | ||
| Cash | $5,520 | Ending cash from Cash Flow Statement |
| Inventory | $3,200 | Unsold lavender roses & supplies |
| Equipment | $7,800 | Cooler + shelves + POS system + tools |
| Total Assets | $16,520 | Cash + Inventory + Equipment |
| Liabilities | ||
| Loan Payable | $3,500 | Remaining loan balance |
| Accounts Payable | $1,000 | Unpaid supplier invoices |
| Total Liabilities | $4,500 | Loan + Payables |
| Equity | ||
| Owner’s Equity | $12,020 | $16,520 – $4,500 |
| Total Liabilities + Equity | $16,520 | Must equal Total Assets |
The Cash Flow Statement: “Do I Actually Have Cash or Just Pretty Numbers?”
Here is where many creators and small business owners falter: profit does not equal cash, and cash flow always tells the truth. You can be profitable but also have no money in your account because you paid suppliers early, clients paid late, and you bought way too many seasonal lavender stems because they were 20% off and you had a vision. But vision does not equal profit.
Cash flow is basically the water supply. If it runs dry, even the prettiest flower shop wilts.
Here is the quick breakdown of the cash flow:
- Operating cash flow: did the roses bring in more cash than they consumed?
- Investing cash flow: did you buy a new fridge, a scooter, shelves?
- Financing cash flow: did you borrow money? Repay it?
- Cash is the bloom, profit is the promise, and finance without cash is a bouquet without water.
Here’s the monthly Cash Flow Statement (“Do we actually have cash?”) breakdown of as of April 30th, 2025 (USD):
| Category | Amount | Calculation |
| Beginning Cash | $3,200 | Cash at start of month |
| Operation Cash Flow | $1,920 | Operating Income × 80% conversion |
| Investing Cash Flow | -$600 | Floral refrigerator purchase |
| Financing Cash Flow | $1,000 | New small business loan |
| Ending Cash | $5,520 | 3,200 + 1,920 – 600 + 1,000 |
Quick Valuation Summary:
This is just a quick summary for us to look at it, this won’t always be something you’ll have to report at, but it’s nice to look all the work done.
| Statement | Key Figure | Value |
| Net Income | Profit this month | $1,824 |
| Total Assets | Stuff the shop owns | $16,520 |
| Total Liabilities | Debts | $4,500 |
| Equity | Owner’s true value | $12,020 |
| Ending Cash | Money in the register | $5,520 |
The Yariverse Girl Code:
Lavender and roses symbolize enchantment and something magical you can’t quite name. That’s what finance should feel like: a combination of logic and intuition, a dance between precision and beauty.
Your AI enhanced flower shop (the code is below) is a reminder that every financial statement is a love letter to your future self, not a punishment or a chore, but a roadmap for growth and expansion. Like lavender and roses, it is all about balance and accountability.
Finance doesn’t have to be harsh; it can be poetic and blooming. Stop making finance the villain when it can be the sunlight that shows you where to prune, water, and bloom.
Lavender and roses do not apologize for taking up space. They grow, just as much as you do.
But how can we make this into a data pipeline
This is where it gets real with code.
The future of small business (even a dreamy lavender rose shop) would benefit from code. It’d enable inventory forecasts based on seasonality, dynamic pricing for high demand holidays, automated accounting, demand prediction for weddings vs. walk ins, cash flow alerts, profit margin simulations, and product mix recommendations.
The flower shop becomes a model, literally. A living dataset, a predictive system. Finance becomes intelligent and adaptive.
#Lavender Roses Flower Shop Full Financial Statements with Calculation Breakdown
import pandas as pd
#-------------------------------------------------------------
# 1. Input assumptions
#-------------------------------------------------------------
# Revenue
revenue = 12_500
# COGS breakdown
flowers = 3_200
ribbons_vases = 900
packaging = 300
delivery_materials = 400
cogs = flowers + ribbons_vases + packaging + delivery_materials
# Operating expenses breakdown
rent = 2_400
wages = 1_800
utilities = 300
shopify_website = 150
marketing = 400
misc = 250
operating_expenses = rent + wages + utilities + shopify_website + marketing + misc
# Interest and tax
loan_balance = 3_500
monthly_interest_rate = 0.0342857 # chosen to approximate 120 interest
interest_expense = round(loan_balance * monthly_interest_rate, 2) # ≈ 120
tax_rate = 0.20
# Cash flow assumptions
beginning_cash = 3_200
cash_from_investing = -600
cash_from_financing = 1_000
# We'll derive cash_from_operations from operating income later
# Balance sheet assumptions (assets & liabilities)
inventory = 3_200
equipment = 7_800
# We'll derive cash from cash flow and equity from A = L + E
loan_payable = loan_balance
accounts_payable = 1_000
#-------------------------------------------------------------
# 2. Income Statement
#-------------------------------------------------------------
gross_profit = revenue - cogs
operating_income = gross_profit - operating_expenses
ebt = operating_income - interest_expense # Earnings Before Tax
tax_expense = round(ebt * tax_rate, 2)
net_income = round(ebt - tax_expense, 2)
income_statement = pd.DataFrame([
["Revenue", revenue, "Total sales from bouquets, events, subscriptions"],
["Cost of Goods Sold (COGS)", cogs,
f"Flowers ({flowers}) + Ribbons/Vases ({ribbons_vases}) + "
f"Packaging ({packaging}) + Delivery Materials ({delivery_materials})"],
["Gross Profit", gross_profit, "Revenue – COGS"],
["Operating Expenses", operating_expenses,
f"Rent ({rent}) + Wages ({wages}) + Utilities ({utilities}) + "
f"Shopify/Website ({shopify_website}) + Marketing ({marketing}) + Misc ({misc})"],
["Operating Income", operating_income, "Gross Profit – Operating Expenses"],
["Interest Expense", interest_expense, f"Loan Balance ({loan_balance}) × {monthly_interest_rate:.6f}"],
["Earnings Before Tax (EBT)", ebt, "Operating Income – Interest Expense"],
["Tax Expense", tax_expense, f"EBT × Tax Rate ({tax_rate:.0%})"],
["Net Income", net_income, "EBT – Tax Expense"]
], columns=["Line Item", "Amount", "Calculation"])
print("-----------------------------------------------------")
print("\nIncome Statement\n")
print("------------------------------------------------------")
print(income_statement.to_string(index=False))
#-------------------------------------------------------------
# 3. Cash Flow Statement
#-------------------------------------------------------------
# Assume 80% of operating income converts to cash from operations
cash_from_operations = round(operating_income * 0.80, 2)
ending_cash = beginning_cash + cash_from_operations + cash_from_investing + cash_from_financing
cash_flow_statement = pd.DataFrame([
["Beginning Cash", beginning_cash, "Cash at start of month"],
["Cash Flow From Operations", cash_from_operations,
"Estimated: Operating Income × 80% cash conversion"],
["Cash Flow From Investing", cash_from_investing,
"Purchase of equipment (e.g., new floral fridge)"],
["Cash Flow From Financing", cash_from_financing,
"New loan or capital contribution"],
["Ending Cash", ending_cash,
"Beginning Cash + CFO + CFI + CFF"]
], columns=["Category", "Amount", "Calculation"])
print("-----------------------------------------------------")
print("\nCash Flow Statement\n")
print("-----------------------------------------------------")
print(cash_flow_statement.to_string(index=False))
#-------------------------------------------------------------
# 4. Balance Sheet
#-------------------------------------------------------------
cash = ending_cash
total_assets = cash + inventory + equipment
total_liabilities = loan_payable + accounts_payable
equity = total_assets - total_liabilities # A = L + E → E = A – L
assets_section = pd.DataFrame([
["Cash", cash, "From Ending Cash in Cash Flow Statement"],
["Inventory", inventory, "Unsold flowers & materials at cost"],
["Equipment", equipment, "Cooler, shelves, POS, tools"],
["Total Assets", total_assets, "Cash + Inventory + Equipment"]
], columns=["Asset Category", "Amount", "Calculation"])
liabilities_section = pd.DataFrame([
["Loan Payable", loan_payable, "Outstanding balance of business loan"],
["Accounts Payable", accounts_payable, "Unpaid supplier invoices"],
["Total Liabilities", total_liabilities, "Loan Payable + Accounts Payable"]
], columns=["Liability Category", "Amount", "Calculation"])
equity_section = pd.DataFrame([
["Owner's Equity", equity, "Total Assets – Total Liabilities"],
["Total Liabilities + Equity", total_liilities_plus_equity := total_liabilities + equity,
"Must equal Total Assets"]
], columns=["Equity Category", "Amount", "Calculation"])
print("-----------------------------------------------------")
print("\nBalance\n")
print("-----------------------------------------------------")
print("Assets:\n")
print(assets_section.to_string(index=False))
print("\nLiabilties:\n")
print(liabilities_section.to_string(index=False))
print("\nEquity:\n")
print(equity_section.to_string(index=False))
#-------------------------------------------------------------
# 5. Summary Check
#-------------------------------------------------------------
print("-----------------------------------------------------")
print("\nSummary Checks")
print("-----------------------------------------------------")
print(f"Net Income (should be ~1824): {net_income}")
print(f"Total Assets: {total_assets}")
print(f"Total Liabilities: {total_liabilities}")
print(f"Equity: {equity}")
print(f"Assets == Liabilities + Equity ? {total_assets == total_liabilities + equity}")
print(f"Ending Cash: {ending_cash}")
The Yariverse 