Forecasting Cash Flow for J&B Example 1
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| J&B INCORPORATED CASH FLOW STATEMENT MAY 1, 200X to NOVEMBER 30, 200X |
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| ASSUMPTIONS: | MAY | JUNE | JULY | AUG. | SEPT. | OCT. | NOV. |
| % of Total Sales per month | 8% | 7% | 7% | 8% | 8% | 10% | 9% |
| Total Unit Sales / Month) | 793 | 693 | 693 | 793 | 793 | 991 | 892 |
| Diskette Sales (note 26) | 317 | 277 | 277 | 317 | 317 | 396 | 357 |
| CD Sales (note 26) | 396 | 347 | 347 | 396 | 396 | 495 | 446 |
| Internet Sales (note 26) | 79 | 69 | 69 | 79 | 79 | 99 | 89 |
| Weighed Average Selling Price (note 1) | $68.01 | $68.01 | $68.01 | $68.01 | $68.01 | $68.01 | $68.01 |
| Product Cost Inflation Rate | 5% | 5% | 5% | 5% | 5% | 5% | 5% |
| CASH INFLOWS: | MAY | JUNE | JULY | AUG. | SEPT. | OCT. | NOV. |
| Cash From Product Sales (100%) | $53,902 | $47,164 | $47,164 | $53,902 | $53,902 | $67,378 | $60,640 |
| Less: Bad Debt (1%) (note 12) | $ 539 | $ 472 | $ 472 | $ 539 | $ 539 | $ 674 | $ 606 |
| NET CASH INFLOWS | $53,363 | $46,693 | $46,693 | $53,363 | $53,363 | $66,704 | $60,033 |
| CASH OUTFLOWS: | |||||||
| Purchase of Diskettes (note 27 a) | $ 0 | $ 9,100 | $ 0 | $ 0 | $ 9,100 | $ 0 | $ 0 |
| Purchase of CD (note 27 b) | $ 0 | $ 0 | $ 2,630 | $ 0 | $ 0 | $ 3,945 | $ 0 |
| Credit Card Charges (note 27 c) | $ 2,726 | $ 2,386 | $ 2,386 | $ 2,726 | $ 2,726 | $ 3,408 | $ 3,067 |
| Packaging Charges (note 27 d) | $ 435 | $ 381 | $ 381 | $ 435 | $ 435 | $ 544 | $ 490 |
| Actual Shipping Charges (note 27 e) | $ 1,752 | $ 1,533 | $ 1,533 | $ 1,752 | $ 1,752 | $ 2,190 | $ 1,971 |
| Toll Free Charges (note 27 f) | $ 1,569 | $ 1,656 | $ 1,449 | $ 1,449 | $ 1,656 | $ 1,656 | $ 2,071 |
| Commission on Sales (note 27 g) | $ 788 | $ 832 | $ 728 | $ 728 | $ 832 | $ 832 | $ 1,040 |
| Product Miscellaneous (note 27 h) | $ 420 | $ 368 | $ 368 | $ 420 | $ 420 | $ 525 | $ 473 |
| Advertising (note 3) | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 |
| Wages & Employee Benefits (note 4) | $11,298 | $11,346 | $11,346 | $11,346 | $11,346 | $11,346 | $11,346 |
| Research & Development (note 19) | $ 9,850 | $10,165 | $10,165 | $10,165 | $10,165 | $10,165 | $10,165 |
| Casual Labour (note 5) | $ 750 | $ 0 | $ 0 | $ 750 | $ 0 | $ 0 | $ 0 |
| Office Supplies (note 6) | $ 500 | $ 0 | $ 0 | $ 488 | $ 0 | $ 488 | $ 0 |
| Rent (note 7) | $ 1,050 | $ 1,050 | $ 1,050 | $ 1,050 | $ 1,050 | $ 1,050 | $ 1,050 |
| Telephone/Fax (note 8) | $ 300 | $ 320 | $ 320 | $ 320 | $ 320 | $ 320 | $ 320 |
| Professional Services (note 9) | $ 250 | $ 292 | $ 292 | $ 292 | $ 292 | $ 292 | $ 292 |
| Business Insurance (note 10) | $ 1,650 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
| Toll-free fees above Variable (note 11) | $ 1,569 | $ 1,656 | $ 1,449 | $ 1,449 | $ 1,656 | $ 1,656 | $ 2,071 |
| Miscellaneous Charges (note 15) | $ 217 | $ 217 | $ 217 | $ 217 | $ 217 | $ 217 | $ 217 |
| Taxes Payable (note 20) | $29,698 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
| Office Furniture (note 17) | $ 1,500 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
| Office Equipment (note 18) | $ 5,000 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
| Internet Storage & Accounts (note 14) | $ 160 | $ 160 | $ 160 | $ 160 | $ 160 | $ 160 | $ 160 |
| Dividends Paid (note 28) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $25,000 |
| TOTAL CASH OUTFLOWS | $83,981 | $53,961 | $46,973 | $46,247 | $54,628 | $51,294 | $72,231 |
| Net Cash Flow (Deficiency) | $-30,618 | $ -7,269 | $ - 281 | $ 7,115 | $ -1,265 | $15,410 | $-12,198 |
| Plus: Beginning Cash Balance (note 21) | $57,608 | $26,989 | $19,721 | $19,440 | $26,555 | $25,290 | $40,700 |
| ENDING CASH BALANCE | $26,989 | $19,721 | $19,440 | $26,555 | $25,290 | $40,700 | $28,502 |
The remaining five (5) months of J&B's second year Forecasted Cashflow Statement is presented below. Recall this is not the correct format - the second year cashflow statement should be developed in a spreadsheet program and should appear on one page.
| J&B INCORPORATED CASH FLOW STATEMENT DECEMBER 1, 200X to APRIL 30, 200Y |
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| ASSUMPTIONS: | DEC. | JAN | FEB. | MARCH | APRIL | TOTALS |
| % of Total Sales per month | 8% | 7% | 10% | 9% | 9% | 100% |
| Total Unit Sales/ Month) | 793 | 693 | 991 | 892 | 892 | 9,907 |
| Diskette Sales (note 26) | 317 | 277 | 396 | 357 | 357 | 3,963 |
| CD Sales (note 26) | 396 | 347 | 495 | 446 | 446 | 4,954 |
| Internet Sales (note 26) | 79 | 69 | 99 | 89 | 89 | 991 |
| Weighed Average Selling Price (note 1) | 68.01 | 68.01 | 68.01 | $68.01 | $68.01 | |
| Product Cost Inflation Rate | 5% | 5% | 5% | 5% | 5% | |
| CASH INFLOWS: | DEC. | JAN | FEB. | MARCH | APRIL | TOTALS |
| Cash From Product Sales (100%) | $53,902 | $47,164 | $67,378 | $60,640 | $60,640 | $673,775 |
| Less: Bad Debt (1%) (note 12) | $ 539 | $ 472 | $ 674 | $ 606 | $ 606 | $ 6,738 |
| NET CASH INFLOWS | $53,363 | $46,693 | $66,704 | $60,033 | $60,033 | $667,037 |
| CASH OUTFLOWS: | TOTALS | |||||
| Purchase of Diskettes (note 27 a) | $ 9,100 | $ 0 | $ 0 | $ 4,550 | $ 0 | $ 31,850 |
| Purchase of CD (note 27 b) | $ 0 | $ 2,630 | $ 0 | $ 0 | $ 2,630 | $ 11,835 |
| Credit Card Charges (note 27 c) | $ 2,726 | $ 2,386 | $ 3,408 | $ 3,067 | $ 3,067 | $ 34,080 |
| Packaging Charges (note 27 d) | $ 435 | $ 381 | $ 544 | $ 490 | $ 490 | $ 5,439 |
| Actual Shipping Charges (note 27 e) | $ 1,752 | $ 1,533 | $ 2,190 | $ 1,971 | $ 1,971 | $ 21,904 |
| Toll Free Charges (note 27 f) | $ 1,864 | $ 1,656 | $ 1,449 | $ 2,071 | $ 1,864 | $ 20,411 |
| Commission on Sales (note 27 g) | $ 936 | $ 832 | $ 728 | $ 1,040 | $ 936 | $ 10,254 |
| Product Miscellaneous (note 27 h) | $ 420 | $ 368 | $ 525 | $ 473 | $ 473 | $ 5,251 |
| Advertising (note 3) | $12,500 | $12,500 | $12,500 | $12,500 | $12,500 | $150,000 |
| Wages & Employee Benefits (note 4) | $11,346 | $11,346 | $11,346 | $11,346 | $11,346 | $136,104 |
| Research & Development (note 19) | $10,165 | $10,165 | $10,165 | $10,165 | $10,165 | $121,662 |
| Casual Labour (note 5) | $ 750 | $ 0 | $ 0 | $ 0 | $ 750 | $ 3,000 |
| Office Supplies (note 6) | $ 0 | $ 488 | $ 0 | $ 0 | $ 488 | $ 2,450 |
| Rent (note 7) | $ 1,050 | $ 1,050 | $ 1,050 | $ 1,050 | $ 1,050 | $ 12,600 |
| Telephone/Fax (note 8) | $ 320 | $ 320 | $ 320 | $ 320 | $ 320 | $ 3,820 |
| Professional Services (note 9) | $ 292 | $ 292 | $ 292 | $ 292 | $ 292 | $ 3,458 |
| Business Insurance (note 10) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 1,650 |
| Toll-free above variable (note 11) | $ 1,864 | $ 1,656 | $ 1,449 | $ 2,071 | $ 1,864 | $ 20,411 |
| Miscellaneous (note 15) | $ 217 | $ 217 | $ 217 | $ 217 | $ 217 | $ 2,600 |
| Taxes Payable (note 20) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 29,698 |
| Office Furniture (note 17) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 1,500 |
| Computer Equipment (note 16) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 5,000 |
| Internet Storage & Accounts (note 14) | $ 940 | $ 160 | $ 160 | $ 160 | $ 160 | $ 2,700 |
| Dividends Paid (note 28) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 25,000 |
| TOTAL CASH OUTFLOWS | $56,676 | $47,979 | $46,343 | $51,781 | $50,581 | $662,677 |
| Net Cash Flow (Deficiency) | $-3,313 | $-1,286 | $20,360 | $ 8,252 | $ 9,453 | |
| Plus: Beginning Cash Balance(note 21) | $28,502 | $25,189 | $23,903 | $44,263 | $52,515 | |
| ENDING CASH BALANCE | $25,189 | $23,903 | $44,263 | $52,515 | $61,968 | |