Create a cash flow with the following information:

Sales Projection for the month is $30,000

75 % of sales are expected to be collected in current month and the remaining 25% to be collected in the following month.

Cost of Goods equals =45% of sales (Materials) 15% of sales (direct labor) 15% of sales (subcontractors)

*Materials and subcontractors and paid in the following month while direct labor is paid in the month worked*

The owners deposit $20,000 in the bank at the beginning of October. $100 of these funds will be used to pay for their common shares and the remaining $19,900 will be set up as a loan from the share holder with no interest and no set terms of repayment.

The corporate income tax is 17%

Operating Expenses

Depreciation

Truck	cost $38,000, useful life 5 years, residual value 20% of costs
Tools	cost $18,000, useful life 8 years
Office Furniture	cost $5000, useful life 3 years
Building	Cost $50,000 useful life 20 years

Other expenses

Insurance $8400 annually

interest on long term debt 4.25% for 20 year amortization

property tax -annual taxes $420

Administrative salaries	$ 4,800.00
Accounting & legal	$ 4,000.00
Advertising & promotions	$ 3,000.00
Business fees & licenses	$ -
Depreciation Expenses	$ 661.39
Insurance	$ 700.00
interest & bank charges	$ 35.00
interest on long term debt	$ -
office supplies	$ 100.00
property tax	$ 35.00
motor vehicles expenses	$ 450.00
repair & maintenance	$ 50.00
telephone	$ 165.00
travel & entertainment	$ 40.00
Utilities	$ 250.00