PROJECT MANAGEMENT

Question 1

Produce a project cash flow statement and discuss the outcome thereof based on the following information:

The project duration is eight (8) months, from February 2021 to September 2021.

On 31 January 2021 your bank account stood at R 1,500.

Income The client pays four (4) payments every second month of R18,200 one (1) month after invoice. You invoice at the end of each second month of the project for the entire project duration. First invoice end of March 2021. You employ labour at R4,500 per month (for the entire duration of the project), paid in month of work. Labour Labour - You hire subconsultants to assist with the work. You can only pay them when Subconsultants the client has paid you and the money is in your bank account. You therefore pay them two payments the month after invoice 1 and 2 reflects in your bank account. The value of each of these payments are R1,000. Materials You procure materials of R1,800 per month (for the entire duration of the project), the supplier gives you one (1) month credit. Equipment You hire equipment at R2,500 per month (for the entire duration of the project), payment is required one (1) month in advance