Handout 8

Rolling Projections Ltd.

2
3
4
5
6
7
8
9
10
11
12

Cash flow projection: six months January - June 20X5

13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32

Assumptions/variables
Historical monthly sales 20X4 ()
Total Projected sales for January - June (20X5)
Monthly Sales
Collection of debts:
In the Month of Sale
In the month following the Sale
In the second month following the Sale
Uncollected

The cash flow

Sales
Cash receipts
Month of Sales
1 month in arrears
2 months in arrears
Total operating receipts
Cash payments
Purchases
Marketing
Rent
Rates
Administrative Expenses
Total operating payments
Net cash flow
Cash balance b/f
Cash balance c/f

60,000
390,000
65,000

Purchases January 20X5

Rise in monthly Purchases 20X5
Opening cash balance
Administrative Expenses per month
Monthly Marketing Budget Jan-May20X5
Marketing Budget for June
Rates - April
Rent - March
Rent - June

10%
60%
25%
5%

27,500
4%
5,000
5,000
1,000
10,000
10,000
15,000
15,000

Jan

65,000.00

Feb

65,000.00

Mar

65,000.00

Apr

65,000.00

May

65,000.00

Jun

65,000.00

6,500.00
36,000.00
15,000.00
57,500.00

6,500.00
39,000.00
15,000.00
60,500.00

6,500.00
39,000.00
16,250.00
61,750.00

6,500.00
39,000.00
16,250.00
61,750.00

6,500.00
39,000.00
16,250.00
61,750.00

6,500.00
39,000.00
16,250.00
61,750.00

27,500.00
1,000.00

28,600.00
1,000.00

29,744.00
1,000.00
15,000.00

30,933.76
1,000.00

32,171.11
1,000.00

33,457.95
10,000.00
15,000.00

5,000.00
33,500.00

5,000.00
34,600.00

5,000.00
50,744.00

10,000.00
5,000.00
46,933.76

5,000.00
38,171.11

5,000.00
63,457.95

24,000.00
5,000.00
29,000.00

25,900.00
29,000.00
54,900.00

11,006.00
54,900.00
65,906.00

14,816.24
65,906.00
80,722.24

23,578.89
80,722.24
104,301.13

-1,707.95
104,301.13
102,593.17

CASH FLOW FORECAST

Gilbert Farruia - 2G - Group 1

Handout 8

Rolling Projections Ltd.

2
3
4
5
6
7
8
9
10
11
12

Cash flow projection: six months January - June 20X5

13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32

Assumptions/variables
Historical monthly sales 20X4 ()
60000
Total Projected sales for January - June (20X5)
390000
Monthly Sales
=B5/6
Collection of debts:
In the Month of Sale
0.1
In the month following the Sale
0.6
In the second month following the Sale 0.25
Uncollected
0.05

The cash flow

Sales
Cash receipts
Month of Sales
1 month in arrears
2 months in arrears
Total operating receipts
Cash payments
Purchases
Marketing
Rent
Rates
Administrative Expenses
Total operating payments
Net cash flow
Cash balance b/f
Cash balance c/f

Purchases January 20X5

Rise in monthly Purchases 20X5
Opening cash balance
Administrative Expenses per month
Monthly Marketing Budget Jan-May20X5
Marketing Budget for June
Rates - April
Rent - March
Rent - June
Jan

Feb

Mar

Apr

27500
0.04
5000
=30000/6
1000
=15000-(G8*5)
10000
15000
15000
May

Jun

=$B6

=$B6

=$B6

=$B6

=$B6

=$B6

=B15*$B8
=B4*B9
=$B4*$B$10
=SUM(B17:B19)

=C15*$B8
=$B6*$B9
=$B4*$B$10
=SUM(C17:C19)

=D15*$B8
=$B6*$B9
=$B6*$B10
=SUM(D17:D19)

=E15*$B8
=$B6*$B9
=$B6*$B10
=SUM(E17:E19)

=F15*$B8
=$B6*$B9
=$B6*$B10
=SUM(F17:F19)

=G15*$B8
=$B6*$B9
=$B6*$B10
=SUM(G17:G19)

=G4
=$G8

=B23+(B23*$G5)
=$G8

=C23+(C23*$G5)
=$G8
=G11

=D23+(D23*$G5)
=$G8

=E23+(E23*$G5)
=$G8

=F23+(F23*$G5)
=G9
=G12

=$G7
=SUM(B23:B27)

=$G7
=SUM(C23:C27)

=$G7
=SUM(D23:D27)

=G10
=$G7
=SUM(E23:E27)

=$G7
=SUM(F23:F27)

=$G7
=SUM(G23:G27)

=B$20-B$28
=C$20-C$28
=D$20-D$28
=E$20-E$28
=F$20-F$28
=G$20-G$28
=G6
=B$32
=C$32
=D$32
=E$32
=F$32
=SUM(B$30:B$31) =SUM(C$30:C$31) =SUM(D$30:D$31) =SUM(E$30:E$31) =SUM(F$30:F$31) =SUM(G$30:G$31)

CASH FLOW FORECAST (F)

Gilbert Farruia - 2G - Group 1