CASHFLOW TUTORIAL:

Requirements:

1. Calculate the cumulative monthly cash out (Cost) in Table 1 in the solution box.
2. Calculate the cumulative monthly revenue (Amount billed) in Table 2 in the solution box.
3. Calculate the cumulative monthly payments (Amount received) in Table 3 in the solution box with:
   • The retained amount of each payment is 10%. Retained amounts are paid with the last payment.
   • The collection of payments is due one month after submission of bills.
4. Draw the cumulative cash out (cost) and cash in (amount received) on the same graph.
5. What is the maximum negative overdraft and project profit.

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The bar chart of a project of six work items, A to F, is shown and the total direct cost and price of each work item is presented in the table. The bond amount of 1,689 is paid at the first day of the project. The overhead and tax amounts to 5,400 per month.

Activity	Total Direct Cost	Total Price
A	8,000	10,720
B	22,000	29,480
C	15,000	20,100
D	19,000	25,460
E	11,000	14,740
F	21,000	28,140

Table 1: Cumulative monthly cash out (Cost)

Item	First month Cost	Second month Cost	Third month Cost	Fourth month Cost
Bond
Indirect cost
A
B
C
D
E
F
Total Cost
Cumulative Cost

Table 2: Cumulative monthly revenue (amount billed)

Item	Prices	1st month revenue	2nd month revenue	3rd month revenue	4th month revenue
A	10,720
B	29,480
C	20,100
D	25,460
E	14,740
F	28,140

Table 3: Cumulative monthly payments (amount received)

Payments	Payment (amount received) calculations	Cumulative payment (amount received)
2nd month
3rd month
4th month
5th month

Table 3: Cumulative monthly payments (amount received)

Payments	Payment (amount received) calculations	Cumulative payment (amount received)
2nd month
3rd month
4th month
5th month