16.16 Working with the information from 16.15, put the cash flow information into a spreadsheet.

Use the spreadsheet to perform ‘what if’ calculations to answer Silas’s questions as follows:

i) ‘What would happen to my estimated cash at bank balance at the end of March if my receivables took 2 months, instead of 1 month, to be settled? Would the bank account go overdrawn at any point in the year?’

ii) ‘I think I may have underestimated my sundry admin expenses. What would happen to the cash at bank balance at the end of March if my expenses each month were

£400 rather than £200?’

iii) ‘What would happen to the end of March cash at bank balance if both of these things happened – i.e. receivables take 2 months to pay me, not 1, and admin expenses increase to £400 each month? Would I have an overdraft at any point, and if so, what would be the maximum budget overdraft figure?’