Cash flow forecasting. Regional Homes Construction Company has a very seasonal business that puts a high priority on cash flow management. Prepare a cash flow forecast for the coming year by month for Regional Construction on a spreadsheet based on the following information: It takes four months to complete house. All houses are custom built, and the company receives payment the month following completion. The average sales price per home is $440,000. The average cost to build a home is: Raw materials: 55% of the sales price, paid equally over the first three months of construction Labor: 28% of the sales price, paid equally over the four months of construction Fees and permits: 3% of the sales price, paid the month before construction begins Legal fees and title transfer: 4% of the sales price, paid at completion of the house Housing starts from the previous year (2013): Sep. 18, Oct. 16, Nov. 11, and Dec. 8 Projected housing starts for Jan. of the following year (2015): 14 What is the total cash flow in and out for 2014, and in which months does Regional Construction Company have negative cash flow? Complete the table with the cash inflows and cash outflows below: (Round the dollar amounts to the nearest dollar.) Sep Oct Dec Actual and Projected Housing Starts Projected Cash Flows by Month Revenue from Sale of Homes Jan Feb Mar Apr $ Cash Out Flows Raw Materials $ Labor Costs $ Fees and Licenses $ Legal and Title Transfer Costs $ Net Cash Flow $ Cash flow forecasting. Regional Homes Construction Company has a very seasonal business that puts a high priority on cash flow management. Prepare a cash flow forecast for the coming year by month for Regional Construction on a spreadsheet based on the following information: It takes four months to complete house. All houses are custom built, and the company receives payment the month following completion. The average sales price per home is $440,000. The average cost to build a home is: Raw materials: 55% of the sales price, paid equally over the first three months of construction Labor: 28% of the sales price, paid equally over the four months of construction Fees and permits: 3% of the sales price, paid the month before construction begins Legal fees and title transfer: 4% of the sales price, paid at completion of the house Housing starts from the previous year (2013): Sep. 18, Oct. 16, Nov. 11, and Dec. 8 Projected housing starts for Jan. of the following year (2015): 14 What is the total cash flow in and out for 2014, and in which months does Regional Construction Company have negative cash flow? Complete the table with the cash inflows and cash outflows below: (Round the dollar amounts to the nearest dollar.) Sep Oct Dec Actual and Projected Housing Starts Projected Cash Flows by Month Revenue from Sale of Homes Jan Feb Mar Apr $ Cash Out Flows Raw Materials $ Labor Costs $ Fees and Licenses $ Legal and Title Transfer Costs $ Net Cash Flow $
