EXERCISE: PREPARING A CASH FLOW FORECAST

Year 1 Forecast

Sales $96,000

Purchases48,000

Gross profit48,000

Expenses

Ad & Promo2,500

Auto 1,400

Electricity1,200

Insurance2,000

Licenses60

Professional fees800

Rent/Lease4,800

Sub Contract (labour)3,000

Telephone750

Total Expenses16,510

Net Profit31,490

Notes/Assumptions

Sales

JAN: $ 0FEB: $ 2,000MAR: $ 4,000APR: $ 6,000

MAY: $ 8,000JUN: $ 12,000JUL: $16,000AUG:$ 16,000

SEP : $ 12,000OCT: $ 10,000NOV: $6,000DEC:$ 4,000

Start-up warehouse inventory purchase - COD in January : $6,000*

Purchases/GOGS Inventory ( 50% per sale) taken in month of sale, paid in 30 days

Ad & Promo: Jan - $1,000 May - $200 June - $500 July - $500August - $300

Auto: $50 per month for gas; repairs $400 in June and Sep

Electricity: paid every 2nd month beginning in February, plus $100*installation deposit in Jan.

Insurance paid in February

Licenses - Business registration- January*

Prof. fees - $300 for Lawyer and $500 for Accountant in January*

Rent/Lease - paid monthly (First and last month paid in January*)

Sub-contract labour - half in July, half in August

Telephone - $50/month, $150 installation fee* - Jan, plus $200 deposit* in Jan

Owner's draw - $2,000 per month

Computer & Software purchased in Jan. $4,000*

Owner's Investment: $10,000 at start-up

*-denotes start-up cost

Customer payment terms:

BLUE Group - all sales cash

GREEN Group - 50% - Cash sales, 50% paid in 30 days

RED Group - 50% paid in 30 days, 50% paid in 60 days

YELLOW Group - all sales paid in 60 days

Share Comments LE A Aa Aalb Alber Hei EXERCISE: PREPARING A CASILLOW FORECAST Year 1 Forecast $ 1.000 48,000 48.000 Sales Purchase Grosse prome Expenses Ad & Promo Auto Electricity Insurance Licenses Professional toes Ron Lease Sub Contract about Telephone Total Expenses Net Prolit Notes/Assumptions Sales JAN: $0 FEB: $2,000 2.500 1.400 1.200 2.000 80 800 4.800 3.000 I 750 16,510 31.490 MAR: $4,000 APR. S 6,000 gewone TE roo Type here to search D 169 26-07 DELL Styles Paragraph 16 12 Notes/Assumptions Sales JAN: $0 FEB: $2,000 MAY: $ 8,000 JUN: $ 12,000 SEP: $ 12,000 OCT: $ 10,000 MAR: $ 4,000 JUL: $16,000 NOV: $6,000 APR $ 6,000 AUG: $ 16,000 DEC: $4,000 Start-up warehouse inventory purchase - COD in January. $6,000" Purchases/GOGS Inventory ( 50% per sale) taken in month of sale, paid in 30 days Ad & Promo: Jan - $1,000 May - $200 June - $500 July - $500 August - $300 Auto: $50 per month for gas, repairs $400 in June and Sep Electricity: paid every 2nd month beginning in February, plus $100* installation deposit in Jan. Insurance-paid in February Licenses - Business registration - January* Prof. fees - $300 for Lawyer and $500 for Accountant in January* Rent/Lease - paid monthly (First and last month paid in January*) Sub-contract labour - half in July, half in August Telephone - $50/month. $150 installation fee* - Jan, plus $200 deposit in Jan Owner's draw - $2,000 per month Computer & Software purchased in Jan. $4,000* I Owner's Investment: $10,000 at start-up *-denotes start-up cost Customer payment terms: BLUE Group - all sales cash GREEN Group -50% - Cash sales, 50% paid in 30 days RED Group - 50% paid in 30 days, 50% paid in 60 days Customer payment terms: BLUE Group - all sales cash GREEN Group -50% - Cash sales, 50% paid in 30 days RED Group - 50% paid in 30 days, 50% paid in 60 days YELLOW Group - all sales paid in 60 days EXERCISE: PREPARING A CASH FLOW FORECAST Year 1 Forecast Sales 96,000 Purchases 48.000 Gross profit 48,000 Expenses Ad & Promo 2,500 Auto 1,400 Electricity 1,200 Insurance 2,000 Licenses 60 Professional fees 800 Rent Lease 4.800 Sub Contract (labour) 3,000 Telephone 750 Total Expenses 16.510 Net Profit 31.490 Notes/Assumptions Sales JAN: $0 FEB: $ 2,000 MAR: $ 4,000 APR: $ 6,000 MAY: $ 8,000 JUN: $ 12,000 JUL: $16,000 AUG: $ 16,000 SEP: $ 12,000 OCT: $ 10,000 NOV: $6,000 DEC: $ 4,000 Start-up warehouse inventory purchase - COD in January : $6.000 Purchases/GOGS Inventory ( 50% per sale) taken in month of sale, paid in 30 days Ad & Promo: Jan - $1,000 May - $200 June - $500 July $500 August - $300 Auto: $50 per month for gas; repairs $400 in June and Sep Electricity: paid every 2nd month beginning in February, plus $100 installation deposit in Jan. Insurance-paid in February Licenses - Business registration - January Prof. fees - $300 for Lawyer and $500 for Accountant in January Rent/Lease - paid monthly (First and last month paid in January") Sub-contract labour - half in July, half in August Telephone - $50/month, $150 installation fee - Jan, plus $200 deposit in Jan Owner's draw - $2,000 per month Computer & Software purchased in Jan. $4,000 Owner's Investment: $10,000 at start-up *-denotes start-up cost Customer payment terms: BLUE Group - all sales cash GREEN Group -50% - Cash sales, 50% paid in 30 days RED Group - 50% paid in 30 days, 50% paid in 60 days YELLOW Group - all sales paid in 60 days Auto Year 1 Forecast Sales $ 96,000 Purchases 48.000 Gross profit 48,000 Expenses Ad & Promo 2,500 1,400 Electricity 1.200 Insurance 2,000 Licenses 60 Professional fees 800 Rent/Lease 4.800 Sub Contract (abour) 3,000 Telephone 750 Total Expenses 16.510 Net Profit 31.490 Notes/Assumptions Sales JAN: $0 FEB: $ 2,000 MAR: $ 4,000 6,000 MAY: $ 8,000 JUN: $ 12,000 JUL: $16,000 $ 16,000 SEP: $ 12,000 OCT: $ 10,000 NOV: $6,000 $ 4,000 APR: $ AUG: DEC: Start-up warehouse inventory purchase - COD in January: $6,000* Purchases/GOGS Inventory ( 50% per sale) taken in month of sale, paid in 30 days Ad & Promo: Jan - $1.000 May - $200 June - $500 July $500 August - $300 Auto: $50 per month for gas; repairs $400 in June and Sep Electricity: paid every 2nd month beginning in February, plus $100" installation deposit in Jan. Insurance - paid in February Licenses - Business registration- January Prof. fees - $300 for Lawyer and $500 for Accountant in January Rent/Lease - paid monthly (First and last month paid in January) Sub-contract labour - half in July, half in August Telephone - $50/month. $150 installation fee - Jan, plus $200 deposit" in Jan Owner's draw - $2,000 per month Computer & Software purchased in Jan. 54.000 Owner's Investment: $10,000 at start-up *-denotes start-up cost Customer payment terms: BLUE Group - all sales cash GREEN Group -50% - Cash sales, 50% paid in 30 days RED Group - 50% paid in 30 days, 50% paid in 60 days YELLOW Group - all sales paid in 60 days Share Comments LE A Aa Aalb Alber Hei EXERCISE: PREPARING A CASILLOW FORECAST Year 1 Forecast $ 1.000 48,000 48.000 Sales Purchase Grosse prome Expenses Ad & Promo Auto Electricity Insurance Licenses Professional toes Ron Lease Sub Contract about Telephone Total Expenses Net Prolit Notes/Assumptions Sales JAN: $0 FEB: $2,000 2.500 1.400 1.200 2.000 80 800 4.800 3.000 I 750 16,510 31.490 MAR: $4,000 APR. S 6,000 gewone TE roo Type here to search D 169 26-07 DELL Styles Paragraph 16 12 Notes/Assumptions Sales JAN: $0 FEB: $2,000 MAY: $ 8,000 JUN: $ 12,000 SEP: $ 12,000 OCT: $ 10,000 MAR: $ 4,000 JUL: $16,000 NOV: $6,000 APR $ 6,000 AUG: $ 16,000 DEC: $4,000 Start-up warehouse inventory purchase - COD in January. $6,000" Purchases/GOGS Inventory ( 50% per sale) taken in month of sale, paid in 30 days Ad & Promo: Jan - $1,000 May - $200 June - $500 July - $500 August - $300 Auto: $50 per month for gas, repairs $400 in June and Sep Electricity: paid every 2nd month beginning in February, plus $100* installation deposit in Jan. Insurance-paid in February Licenses - Business registration - January* Prof. fees - $300 for Lawyer and $500 for Accountant in January* Rent/Lease - paid monthly (First and last month paid in January*) Sub-contract labour - half in July, half in August Telephone - $50/month. $150 installation fee* - Jan, plus $200 deposit in Jan Owner's draw - $2,000 per month Computer & Software purchased in Jan. $4,000* I Owner's Investment: $10,000 at start-up *-denotes start-up cost Customer payment terms: BLUE Group - all sales cash GREEN Group -50% - Cash sales, 50% paid in 30 days RED Group - 50% paid in 30 days, 50% paid in 60 days Customer payment terms: BLUE Group - all sales cash GREEN Group -50% - Cash sales, 50% paid in 30 days RED Group - 50% paid in 30 days, 50% paid in 60 days YELLOW Group - all sales paid in 60 days EXERCISE: PREPARING A CASH FLOW FORECAST Year 1 Forecast Sales 96,000 Purchases 48.000 Gross profit 48,000 Expenses Ad & Promo 2,500 Auto 1,400 Electricity 1,200 Insurance 2,000 Licenses 60 Professional fees 800 Rent Lease 4.800 Sub Contract (labour) 3,000 Telephone 750 Total Expenses 16.510 Net Profit 31.490 Notes/Assumptions Sales JAN: $0 FEB: $ 2,000 MAR: $ 4,000 APR: $ 6,000 MAY: $ 8,000 JUN: $ 12,000 JUL: $16,000 AUG: $ 16,000 SEP: $ 12,000 OCT: $ 10,000 NOV: $6,000 DEC: $ 4,000 Start-up warehouse inventory purchase - COD in January : $6.000 Purchases/GOGS Inventory ( 50% per sale) taken in month of sale, paid in 30 days Ad & Promo: Jan - $1,000 May - $200 June - $500 July $500 August - $300 Auto: $50 per month for gas; repairs $400 in June and Sep Electricity: paid every 2nd month beginning in February, plus $100 installation deposit in Jan. Insurance-paid in February Licenses - Business registration - January Prof. fees - $300 for Lawyer and $500 for Accountant in January Rent/Lease - paid monthly (First and last month paid in January") Sub-contract labour - half in July, half in August Telephone - $50/month, $150 installation fee - Jan, plus $200 deposit in Jan Owner's draw - $2,000 per month Computer & Software purchased in Jan. $4,000 Owner's Investment: $10,000 at start-up *-denotes start-up cost Customer payment terms: BLUE Group - all sales cash GREEN Group -50% - Cash sales, 50% paid in 30 days RED Group - 50% paid in 30 days, 50% paid in 60 days YELLOW Group - all sales paid in 60 days Auto Year 1 Forecast Sales $ 96,000 Purchases 48.000 Gross profit 48,000 Expenses Ad & Promo 2,500 1,400 Electricity 1.200 Insurance 2,000 Licenses 60 Professional fees 800 Rent/Lease 4.800 Sub Contract (abour) 3,000 Telephone 750 Total Expenses 16.510 Net Profit 31.490 Notes/Assumptions Sales JAN: $0 FEB: $ 2,000 MAR: $ 4,000 6,000 MAY: $ 8,000 JUN: $ 12,000 JUL: $16,000 $ 16,000 SEP: $ 12,000 OCT: $ 10,000 NOV: $6,000 $ 4,000 APR: $ AUG: DEC: Start-up warehouse inventory purchase - COD in January: $6,000* Purchases/GOGS Inventory ( 50% per sale) taken in month of sale, paid in 30 days Ad & Promo: Jan - $1.000 May - $200 June - $500 July $500 August - $300 Auto: $50 per month for gas; repairs $400 in June and Sep Electricity: paid every 2nd month beginning in February, plus $100" installation deposit in Jan. Insurance - paid in February Licenses - Business registration- January Prof. fees - $300 for Lawyer and $500 for Accountant in January Rent/Lease - paid monthly (First and last month paid in January) Sub-contract labour - half in July, half in August Telephone - $50/month. $150 installation fee - Jan, plus $200 deposit" in Jan Owner's draw - $2,000 per month Computer & Software purchased in Jan. 54.000 Owner's Investment: $10,000 at start-up *-denotes start-up cost Customer payment terms: BLUE Group - all sales cash GREEN Group -50% - Cash sales, 50% paid in 30 days RED Group - 50% paid in 30 days, 50% paid in 60 days YELLOW Group - all sales paid in 60 days