html5-img
1 / 5

Cash-Flow Projection

Cash-Flow Projection. Purpose : T o predict the timing and amount of revenues and expenses. It projects when money will actually flow into the venture; example, Revenue from cash sales and accounts receivable.

harley
Download Presentation

Cash-Flow Projection

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Cash-Flow Projection

  2. Purpose: • To predict the timing and amount of revenues and expenses. • It projects when money will actually flow into the venture; example, Revenue from cash sales and accounts receivable. • It also projects when money will flow out of the business; example, Expenses for salaries, other expense and accounts payable. Cash-Flow Projection

  3. Cash-Flow Projection

  4. Exercise: • Toni has decided to set up a lawn care and pool maintenance business for the summer because she wants to work her own hours. • She estimates that she will need a start-up loan of $700 and monthly revenue as follows: April - $1500; May - $2000; June & July - $2500; August - $3500; and Sept. - $1000. • She needs to buy equipment worth $3500 and will spend $300 / month renting additional equipment. • She will hire help in May & June at $250/month and July & August at $350/month.

  5. Exercise: • In April she must pay Business License of $50 and Insurance of $400. • She will spend $50 in April & May for Advetising. • Additional monthly expense include $20/mo. for Office Supplies and $50/mo. for Miscellaneous Expenses. • Finally, she will take a Personal Drawings of $200/mo. For April through August and $300 for September.

More Related