Original Cash Budget

Revised Cash Budget

a) Analyze the results from the original cash budget created during Step 2. The analysis should include a discussion of the anticipated sales in relation to the estimated labor and materials, as well as the overall month to month surplus cash or loan needed while explaining what appears to be attributing to the surplus or need. This does not imply that every month and line item should be discussed. In the past, students created graphs to visually present the data. For the analysis, emphasis should be on the significant surplus cash and loans needed. Explain what appears to be a seasonality factor with sales and the timing of the raw materials and labor. The analysis should also include a discussion of the implications for the business in terms of profits, FCF, risk, intrinsic value, etc. The information previously gathered about Flagstaff, Inc. should be used to discuss the implications.

Flagstaff Inc. Projected Monthly Cash Eudget (data in millions of dollars) Flagstaff Inc. Projected Monthly Cash Eudget (data in millions of dollars)