Cashflow Forecasting

Your Scenario

As a manager of an event management company, you are required to write a cash flow forecast using the

template provided.

Your cash flow forecast will predict the bank balance at the end of each month for every month of the year.

The information you have at your disposal to do task is as follows:

A. The event management company has on its books four (4) major events to run which will take place in

March, May, August, and October.

C. Expenditure on casual salaries, travel and transport, and venue hire will occur only in the months in which the four events take place. These expenditures will be the same for each event.

D. Salaries and Office and administration expenses will occur evenly every month.

E. The company's opening bank balance on 1 January is 5,000

F. The company will receive a government grant of 50,000 in July.

G. The company will make a small income from Merchandising during the months in which the four events are staged. The event in March will earn 1,300 merchandising income, and the other events in May, August and October will earn 1,600, 1,800 and 1,300 respectively.

total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Opening Balance 5000

income

ticket sales 285000

merchandising 6000

government grant 50000

total 346000

expenditure

salaries 120000

casual wages 10000

office and admin 36000

travel & transport 56000

venue hire 24000

total 246000 0 0 0 0 0 0 0 0 0 0 0 0

closing balance 100000