Final answer:
In choosing a water source, a distillery needs to consider risks, costs, and impact on financial statements. Examples of distilleries that have made similar choices include The Macallan and Maker's Mark distilleries.
Step-by-step explanation:
In choosing a water source, a distillery would need to consider risks, costs, and the impact on the income statement and balance sheet. Risks can include water quality issues, availability, and legal and regulatory requirements. Costs would include the expense of procuring the water, treating it if necessary, and any infrastructure needed to transport it. The impact on the income statement and balance sheet would depend on factors such as the pricing of the water source and the cost of production.
Examples of distilleries that have made similar choices include:
- The Macallan distillery in Scotland, which uses spring water from the nearby Minnon Den to produce their whisky.
- Maker's Mark distillery in Kentucky, which sources its water from a limestone spring on their property.