Forecasting Cash Flow for J&B Example 1A

J&B INCORPORATED
CASH FLOW STATEMENT
MAY 1, 200W  to  NOVEMBER 30, 200W

ASSUMPTIONS:

MAY

JUNE

JULY

AUG.

SEPT.

OCT.

NOV.
% of Total Sales per month 3% 3% 8% 8% 9% 9% 10%
Total Unit Sales/ Month) 236 236 631 631 709 709 788
Diskette Sales (note 26) 142 142 378 378 426 426 473
CD Sales (note 26) 83 83 221 221 248 248 276
Internet Sales (note 26) 12 12 32 32 35 35 39
Weighed Average Selling Price (note 1) $73.89 $73.89 $73.89 $73.89 $73.89 $73.89 $73.89
CASH INFLOWS:
Cash From Product Sales (100%) $17,472 $17,472 $46,592 $46,592 $52,416 $52,416 $58,240
Less: Bad Debt (1%) (note 12) $ 175 $ 175 $ 466 $ 466 $ 524 $ 524 $ 582
NET CASH INFLOWS $17,297 $17,297 $46,126 $46,126 $51,892 $51,892 $57,658
CASH OUTFLOWS:
Purchase of Diskettes (note 27 a) $8,670 $ 0 $ 0 $ 8,670 $ 0 $ 8,670 $ 0
Purchase of CD (note 27 b) $2,500 $ 0 $ 0 $ 0 $ 2,500 $ 0 $ 0
Credit Card Charges (note 27 c) $ 877 $ 877 $ 2,339 $ 2,339 $ 2,632 $ 2,632 $ 2,924
Packaging Charges (note 27 d) $ 130 $ 130 $ 347 $ 347 $ 391 $ 391 $ 434
Actual Shipping Charges (note 27 e) $ 636 $ 636 $ 1,696 $ 1,696 $ 1,908 $ 1,908 $ 2,120
Toll Free Charges (note 27 f) $ 0 $ 471 $ 471 $ 1,255 $ 1,255 $ 1,412 $ 1,412
Commission on Sales (note 27 g) $ 0 $ 236 $ 236 $ 631 $ 631 $ 709 $ 709
Product Miscellaneous (note 27 h) $ 118 $ 118 $ 315 $ 315 $ 355 $ 355 $ 394
Advertising (note 3) $5,000 $5,000 $12,000 $12,000 $12,000 $12,000 $12,000
Wages & Employee Benefits (note 4) $6,217 $6,900 $10,464 $10,857 $10,857 $10,857 $10,857
Research & Development (note 19) $7,630 $8,240 $ 8,240 $ 8,240 $ 8,240 $ 8,240 $ 8,240
Casual Labor (note 5) $ 0 $ 0 $ 0 $ 800 $ 0 $ 0 $ 0
Office Supplies (note 6) $ 0 $ 500 $ 0 $ 0 $ 500 $ 0 $ 0
Rent  (note 7) $1,000 $1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000
Telephone/Fax (note 8) $ 0 $ 300 $ 300 $ 300 $ 300 $ 300 $ 300
Professional Services (note 9) $ 0 $2,250 $ 2,250 $ 250 $ 250 $ 250 $ 250
Business Insurance (note 10) $1,500 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Toll-free Charges above Variable (note 11) $ 0 $ 471 $ 471 $ 1,255 $ 1,255 $ 1,412 $ 1,412
Miscellaneous Charges (note 15) $ 200 $ 200 $ 200 $ 200 $ 200 $ 200 $ 200
Office Furniture (note 17) $1,618 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Office Equipment (note 16) $4,966 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Payment on Operating Loan (note 13) $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Interest on Loan (note 13) $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Internet Storage & Accounts (note 14) $ 150 $ 150 $ 150 $ 150 $ 150 $ 150 $ 150
Dividends Paid (note 28) $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $20,000
TOTAL CASH OUTFLOWS $41,213 $27,480 $40,480 $50,305 $44,422 $50,485 $62,402
Net Cash Flow (Deficiency) $-23,915 $-10,183 $5,646 $-4,179 $7,470 $1,407 $-4,744
Beginning Cash Balance (note 21) $63,314 $39,398 $29,216 $34,862 $30,683 $38,153 $39,560
ENDING CASH BALANCE $39,398 $29,216 $34,862 $30,683 $38,153 $39,560 $34,816

 

The remaining five (5) months of J&B's first year Forecasted Cashflow Statement is presented below. Recall this is not the correct format - the first year cashflow statement should be developed in a spreadsheet program and should appear on one page.


J&B INCORPORATED
CASH FLOW STATEMENT
DECEMBER 1, 200W to  APRIL 30, 200X

 

ASSUMPTIONS:

DEC.

JAN.

FEB.

MAR.

APRIL

TOTALS
% of Total Sales per month 10% 10% 10% 10% 10% 100%
Total Unit Sales/ Month) 788 788 788 788 788 7,882
Diskette Sales (note 26) 473 473 473 473 473 4729
CD Sales (note 26) 276 276 276 276 276 2,759
Internet Sales (note 26) 39 39 39 39 39 394
Weighed Average Selling Price (note 1) $73.89 $73.89 $73.89 $73.89 $73.89
CASH INFLOWS: DEC. JAN FEB. MARCH APRIL TOTALS
Cash From Product Sales (100%) $58,240 $58,240 $58,240 $58,240 $58,240 $582,401
Less: Bad Debt (1%) (note 12) $ 582 $ 582 $ 582 $ 582 $ 582 $ 5,824
NET CASH INFLOWS $57,658 $57,658 $57,658 $57,658 $57,658 $576,577
CASH OUTFLOWS:
Purchase of Diskettes (note 27 a) $ 0 $13,005 $ 0 $ 8,670 $ 0 $47,658
Purchase of CD (note 27 b) $ 0 $ 2,500 $ 0 $ 0 $ 2,500 $ 10,000
Credit Card Charges (note 27 c) $2,924 $ 2,924 $ 2,924 $ 2,924 $ 2,924 $ 29,242
Packaging Charges (note 27 d) $ 434 $ 434 $ 434 $ 434 $ 434 $ 4,343
Actual Shipping Charges (note 27 e) $2,120 $ 2,120 $ 2,120 $ 2,120 $ 2,120 $ 21,199
Toll Free Charges (note 27 f) $1,569 $ 1,569 $ 1,569 $ 1,569 $ 1,569 $ 14,117
Commission on Sales (note 27 g) $ 788 $ 788 $ 788 $ 788 $ 788 $ 7,094
Product Miscellaneous (note 27 h) $ 394 $ 394 $ 394 $ 394 $ 394 $ 3,941
Advertising  (note 3) $12,000 $12,000 $12,000 $12,000 $12,000 $130,000
Wages & Employee Benefits (note 4) $10,857 $10,857 $10,857 $10,857 $10,857 $121,291
Research & Development (note 19) $8,240 $8,240 $ 8,240 $ 8,240 $ 8,240 $ 98,271
Casual Labour (note 5) $ 800 $ 0 $ 0 $ 0 $ 800 $ 2,400
Office Supplies  (note 6) $ 500 $ 0 $ 0 $ 0 $ 0 $ 1,500
Rent  (note 7) $1,000 $1,000 $ 1,000 $ 1,000 $ 1,000 $ 12,000
Telephone/Fax (note 8) $ 300 $ 300 $ 300 $ 300 $ 300 $ 3,300
Professional Services (note 9) $ 250 $ 250 $ 250 $ 250 $ 250 $ 6,750
Business Insurance (note 10) $ 0 $ 0 $ 0 $ 0 $ 0 $ 1,500
Toll-free Charges above Variable (note 11) $1,569 $1,569 $ 1,569 $ 1,569 $ 1,569 $ 14,117
Miscellaneous Charges (note 15) $ 200 $ 200 $ 200 $ 200 $ 200 $ 2,400
Office Furniture (note 17) $ 0 $ 0 $ 0 $ 0 $ 0 $ 1,618
Office Equipment  (note 16) $ 0 $ 0 $ 0 $ 0 $ 0 $ 4,966
Payment on Operating Loan (note 13) $20,000 $ 0 $ 0 $ 0 $ 0 $ 20,000
Interest on Loan  (note 13) $ 2,000 $ 0 $ 0 $ 0 $ 0 $ 2,000
Internet Storage & Accounts (note 14) $ 900 $ 150 $ 150 $ 150 $ 150 $ 2,550
Dividends Paid (note 28) $ 0 $ 0 $ 0 $ 0 $ 0 $ 20,000
TOTAL CASH OUTFLOWS $66,844 $58,299 $42,794 $51,464 $46,094 $582,283
Net Cash Flow (Deficiency) $(9,187) $ (642) $14,863 $ 6,193 $11,563
Plus Beginning Cash Balance (note 21) $34,816 $25,629 $24,988 $39,851 $46,044
ENDING CASH BALANCE $25,629 $24,988 $39,851 $46,044 $57,608
* Numbers are rounded.

 

Categories: Samples and Examples