Activity 9 – Cash Flow Plan

Based on its record book, this is the Cash Flow of the bakery in the first half of January. Continue making the Cash Flow Plan for the rest of January.

Fe
Jan 5 8 9 10 15 17 19 20 21 22 23 24 25 26 27 28 30 b
Cash at the beginning of the 15,0 1,7 1,9 3,4 3,9
day 00 45 95 95 95                          
CASH IN                                    
Sales – Bread   250   500 500                          
1,5
Sales – Cakes     00                              
Any other cash in                                    
15,0 1,9 3,4 3,9 4,4
TOTAL CASH IN 00 95 95 95 95                          
CASH OUT                                    
Direct Materials - Flour, Salt,
Yeast 750                                  
Direct Materials - Cake Mix,
Butter, Choco 705                                  
Direct Labor                                    
Direct Costs - LPG for Oven 600                                  
Indirect Costs – Stationery 200                                  
1,00
Indirect Costs – Fuel 0                                  
10,0
Any other cash out (Oven) 00                                  
13,2
TOTAL CASH OUT 55 0 0 0 0                          
1,74 1,9 3,4 3,9 4,4
Cash at the end of the day 5 95 95 95 95                          
Cash Out for Family
Expenses                                    
Remaining Cash After Family 1,74 1,9 3,4 3,9 4,4  21  25  60  66  25  87  92  97  53  13,2  143 484
Expenses 5 95 95 95 95 85 60 60 85 15 65 65 65 40 15 40 0   
NOTE: The Business Part (Rows 1-10) of the Cash-In, Cash-Out Plan will be different for the times when demand and prices vary (e.g. dry vs. rainy season). The
Family Part (Rows 13-14) will vary for the end of the month, birthdays, school enrollment time, and other occasions.

GROUP DISCUSSION – On Feb. 5, the owner had to buy and transport materials of the same amount as Jan. 26. He had no cash left
after that. Suggest what the owner should do to avoid running out of cash.