Your new venture will open for business on July 1, 2013. You will hire staff (costing $40,000/month) effective January 1, 2013. Collections lag billing by 3 months (in other words, once you bill for a service, you must wait 90 days for the payment to be received).You will charge $100.00 per unit of business and have an 80% collection rate.Volume is projected to be as follows:

If you have $500,000 of cash on hand on January 1, 2013, how much cash will you have at the end of June 2014?

Month

Unit

Volume

Unit Revenue/Cost

Gross Revenue

Collection Rate

Net Revenue

Jul-13

Cash on hand

1.00

$500,000.00

$500,000.00

100%

$500,000.00

Jul-13

Service Provided

1,000.00

$100.00

$100,000.00

80%

$80,000.00

Aug-13

Service Provided

1,000.00

$100.00

$100,000.00

80%

$80,000.00

Sep-13

Service Provided

1,000.00

$100.00

$100,000.00

80%

$80,000.00

Oct-13

Service Provided

1,100.00

$100.00

$110,000.00

80%

$88,000.00

Nov-13

Service Provided

1,100.00

$100.00

$110,000.00

80%

$88,000.00

Dec-13

Service Provided

1,100.00

$100.00

$110,000.00

80%

$88,000.00

Jan-14

Service Provided

1,200.00

$100.00

$120,000.00

80%

$96,000.00

Feb-14

Service Provided

1,200.00

$100.00

$120,000.00

80%

$96,000.00

Mar-14

Service Provided

1,200.00

$100.00

$120,000.00

80%

$96,000.00

Apr-14

Service Provided

1,300.00

$100.00

$130,000.00

80%

$104,000.00

May-14

Service Provided

1,300.00

$100.00

$130,000.00

80%

$104,000.00

Jun-14

Service Provided

1,300.00

$100.00

$130,000.00

80%

$104,000.00

Jul-13

Monthly Payroll

1.00

$(40,000.00)

$(40,000.00)

100%

$(40,000.00)

Aug-13

Monthly Payroll

1.00

$(40,000.00)

$(40,000.00)

100%

$(40,000.00)

Sep-13

Monthly Payroll

1.00

$(40,000.00)

$(40,000.00)

100%

$(40,000.00)

Oct-13

Monthly Payroll

1.00

$(40,000.00)

$(40,000.00)

100%

$(40,000.00)

Nov-13

Monthly Payroll

1.00

$(40,000.00)

$(40,000.00)

100%

$(40,000.00)

Dec-13

Monthly Payroll

1.00

$(40,000.00)

$(40,000.00)

100%

$(40,000.00)

Jan-14

Monthly Payroll

1.00

$(40,000.00)

$(40,000.00)

100%

$(40,000.00)

Feb-14

Monthly Payroll

1.00

$(40,000.00)

$(40,000.00)

100%

$(40,000.00)

Mar-14

Monthly Payroll

1.00

$(40,000.00)

$(40,000.00)

100%

$(40,000.00)

Apr-14

Monthly Payroll

1.00

$(40,000.00)

$(40,000.00)

100%

$(40,000.00)

May-14

Monthly Payroll

1.00

$(40,000.00)

$(40,000.00)

100%

$(40,000.00)

Jun-14

Monthly Payroll

1.00

$(40,000.00)

$(40,000.00)

100%

$(40,000.00)

Total Gross Revenue =>

$ 1,400,000.00

Total Cash on hand =>

$ 1,124,000.00