Cash flow forecast
P3, M1, D1
July Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Total
RECEIPTS
Cash sales 41,500 41,500 41,500 £26,000 £26,000 £26,000 £30,000 £30,000 £30,000 £38,000 £38,000 £38,000 406,500
Capital 30,000 30,000
Loans 50,000 50,000
Total Receipts 71,500 £41,500 £41,500 £26,000 £26,000 £26,000 £80,000 £30,000 £30,000 £38,000 £38,000 £38,000 486,500
PAYMENTS Total
Loan repayments £1,500 £1,500 £1,500 £1,500 £1,500 £7,500
Capital equipment £135,000 £135,000
Small storage unit £1,750 £1,750 £1,750 £1,750 £1,750 £1,750 £1,750 £1,750 £1,750 £1,750 £1,750 £1,750 £21,000
Monthly rates £292 £292 £292 £292 £292 £292 £292 £292 £292 £292 £292 £292 £3,504
Owners wages 3,334 3,334 3,334 3,334 3,334 3,334 3,334 3,334 3,334 3,334 3,334 3,334 40,008
Employees wages 4,084 4,084 4,084 1,584 1,584 1,584 1,584 1,584 1,584 4,084 4,084 4,084 34,008
Telephone 300 £300 £300 £900
Van running costs £2,000 £2,000 £2,000 £2,000 £2,000 £2,000 £2,000 £2,000 £2,000 £2,000 £2,000 £2,000 £24,000
Admin Cost / General Expenses £150 £150 £150 £150 £150 £150 £150 £150 £150 £150 £150 £150 £1,800
Advertising £160 £160 £160 £660 £160 £160 £160 £660 £160 £160 £160 £660 £3,420
Heat and light £500 £500 £500 £500 £500 £500 £500 £500 £500 £500 £500 £500 £6,000
Water £1,000
Insurance 6,700
Other overheads 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000
Purchases 8,150 8,150 8,150 5,200 5,200 5,200 6,200 6,200 6,200 7,600 7,600 7,600 81,450
Total payments £156,420 £21,420 £21,420 £16,770 £15,970 £16,970 £23,670 £19,270 £18,470 £22,370 £22,370 £23,170 378,290
Total
Net cashflow -84,920 £20,080 £20,080 £9,230 £10,030 £9,030 £56,330 £10,730 £11,530 £15,630 £15,630 £14,830 108,210
Monthly summary
Opening balance 0 -84920 -£64,840 -£44,760 -£35,530 -£25,500 -£16,470 £39,860 £50,590 £62,120 £77,750 £93,380
Net cash flow -84920 £20,080 £20,080 £9,230 £10,030 £9,030 £56,330 £10,730 £11,530 £15,630 £15,630 £14,830
Closing balance -84920 -£64,840 -£44,760 -£35,530 -£25,500 -£16,470 £39,860 £50,590 £62,120 £77,750 £93,380 £108,210
There are many changes that can occur in the cash flow forecast that can
impact the overall net profit and that the business needs to be aware of. There
can be unexpected changes such as economic; the interest rates for the loans
can go higher, which can impact the overall profit of the business. Suppliers
can raise their prices, and if the business is not aware of that, their expenses
will increase and they will not know why it is happening.
The causes for cash flow problems include paying too much for the stock,
setting the prices too low, investing not enough capital, buying too much fixed
assets and seasonal issues. Businesses can run into problems when borrowing
too much from the bank, because they have to pay interest on top of their
loans, which can increase if the business does not payback on time. The
business may experiences cash flow problems in July because there is a
negative net cash flow, which is caused by the overspending on capital
equipment, so basically buying too much fixed assets.
The outstanding funds carry on all the way to January. This can cause
difficulties for the business if such a large number of money is going out than
