Twelve-Month Cash Flow May 18- . Jan. 18 Feb-18 Mar-18-Apr 18 Jul. 18.1 Sep-18.

Question

Twelve-Month Cash Flow May 18- . Jan. 18 Feb-18 Mar-18-Apr 18 Jul. 18.1 Sep-18. Jun 18 Augsa Oct-18 Nov 18 Dec 13 3 Cash Position (beg of month)50.000 5 Cash Receipts Cash Sales as%Co Credit Sales(75% n 30 days) Other Cash 9 Total Cash Receipts 10 11 Cash Disbursements 12 13 Rent Utities 15 16 17 18 Total Cash Disbursements Advertising 20 Cash Position (end of month 22 ASSUMPTIONS 23 24 25 Unt Sales Price50.00 Terms from SupplersCOO arale costs per unr S 14 50 Advertsing Expenses are $8000 for Jan-Mar, $2000 each month thereafter Wages are $8500 each month Rent is $1720 per month, Uelties are $400 per month, and loan payment is $1400 per month SALES FORECAST 28 January 29 F 0 March 300 250 32 Ma 33 June 35 450 37 October 8 November 9 December 600

Explanation / Answer

Twelve Month Cash Flow Particulars Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Cash Position at Beg of Month 50000 29580 16460 7090 3820 -1625 -1545 410 2365 4220 7950 11680 Cash Receipts: Cash Sales(25% COD) 2500 3750 3750 3125 5000 5625 5625 5625 6250 6250 6250 7500 Credit Sales(75% in 30 Days) 0 7500 11250 11250 9375 15000 16875 16875 16875 18750 18750 18750 Total Cash Receipts 2500 11250 15000 14375 14375 20625 22500 22500 23125 25000 25000 26250 Cash Disbursements: Purchases 2900 4350 4350 3625 5800 6525 6525 6525 7250 7250 7250 8700 Rent 1720 1720 1720 1720 1720 1720 1720 1720 1720 1720 1720 1720 Utilities 400 400 400 400 400 400 400 400 400 400 400 400 Loan Payment 1400 1400 1400 1400 1400 1400 1400 1400 1400 1400 1400 1400 Wages 8500 8500 8500 8500 8500 8500 8500 8500 8500 8500 8500 8500 Advertising 8000 8000 8000 2000 2000 2000 2000 2000 2000 2000 2000 2000 Total Cash Disbursements 22920 24370 24370 17645 19820 20545 20545 20545 21270 21270 21270 22720 Cash Position at End of Month 29580 16460 7090 3820 -1625 -1545 410 2365 4220 7950 11680 15210 Sales Forcast Particulars Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Units 200 300 300 250 400 450 450 450 500 500 500 600 Sales(Units * SP) 10000 15000 15000 12500 20000 22500 22500 22500 25000 25000 25000 30000 Variable Cost (Units *VCPU) 2900 4350 4350 3625 5800 6525 6525 6525 7250 7250 7250 8700 (Paid on Cash Basis)

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