GUIDELINES

GENERAL

Definition: A cashflow projection is a forecast of cash funds a business anticipates receiving and paying out throughout the course of a give
position at specific times during the period being projected. For the purpose of this projection, cash funds are defined as cash, cheques or m

Objective: The purpose of preparing a cash flow projection is to determine shortages or excesses of the cash necessary to operate the bus
in the project, financial plans must be altered to provide more cash until a proper cashflow balance is obtained. For example, more owner cas
products or less credit sales to customers will provide more cash to the business. Ways to reduce the amount of cash paid out include havin
of equipment or other fixed assets, or eliminating some operating expenses. If excesses of cash are revealed, it might indicate excessive bo
used more effectively. The objective is to finally develop a plan which, if followed, will provide a well-managed flow of cash.

The spreadsheet: The cashflow projection worksheet in this file provides a systematic method of recording estimates of cash receipts and e
with actual receipts and expenditure as they become known. The entries listed in the spreadsheet will not necessarily apply to every busines
pertinent to specific businesses may not be included. It is suggested, therefore, that you adapt the spreadsheet to your business, with approp
required. Before the cashflow projection can be completed and a pricing structure established, it is necessary to know or estimate various el

What are the direct costs of your product or services per unit?
What are the monthly or yearly costs of your operation?
What is the sales price per unit of your product or service?
What sources of cash are available to you, other than income from sales? Such sources may include loans, equity capital and rent.

Procedure: Most of the entries for the cashflow spreadsheet are self-explanatory. However, the following suggestions are offered to simplify
(A) Suggest whole pounds sterling be used rather than showing pence.
(B) If this is a new business, or an existing business undergoing significant changes or alterations, the cashflow part of the column marked "
(Fill in appropriate blanks only.) Costs involved here are, for example, rent, telephone and utilities deposits before the business is actually op
purchases, alterations, the owner's cash injection and cash from loans received before actual operations begin.
(C) Next fill in the pre-start-up position of the essential operating data (non-cashflow information), where applicable.
(D) Complete the spreadsheet using the suggestions for each entry provided in the partial spreadsheet on the next worksheet.

CHECKING

In order to ensure that the figures are properly calculated and balanced, they must be checked. Several methods may be used, but the follow
minimum:

CHECK 1: Item 1 [beginning cash on the premises – 1st month] plus item 3 [Total cash receipts – total column] minus item 6 [total cash paid
to item 7 [cash position at end of 12th month]. In other words, item 1 + item 3 - item 6 = item 7.

CHECK 2: Item A [sales volume – total column] plus item B [accounts receivable – pre-start-up position] minus item 2(a) [cash sales – total
receivable collection – total column] minus item C [bad debt – total column] should be equal to item B [accounts receivable at end of 12th mo
(pre-start-up) - item 2(a) - item 2(b) - item 2(c) = item B (at 12th month).

CHECK 3: The horizontal total of item 6 [total cash paid out] is equal to the vertical total of all items under item 5 [5(a) to 5(w)] in the total co
CHECK 4: The horizontal total of item 3 [total cash receipts] is equal to the vertical total of all items under item 2 [2(a) to 2(c)] in the total col

ANALYSE the relationship between the cashflow and the projected profit during the period in question. The estimated profit is the difference
assets and the estimated change in liabilities before such things as owner withdrawal, appreciation of assets, change in investments etc. Th
This can be obtained as follows:

The change in assets before owner withdrawal, appreciation of assets, change in investments etc can be computed by adding the following
(1) Item 7 [cash position – end of last month] minus item 1 [cash on the premises at the beginning of the first month].
(2) Item 5 (t) [capital purchases – total column] minus item F [depreciation – total column].
(3) Item B [accounts receivable – end of 12th month] minus item B [accounts receivable – pre-start-up position].
(4) Item D [inventory on the premises – end of month] minus item D [inventory on the premises – pre-start-up position].
(5) Item 5 (w) [owner's withdrawal – total column] or dividends, minus such things as an increase in investment.
(6) Item 5 (v) [reserve and/or escrow – total column].

The change in liabilities (before items noted in "change in assets") can be computed by adding the following:
(1) Item 2(c) [loans – total column] minus 5(s) [loan principal payment – total column].
(2) Item E [accounts payable – end of 12th month] minus E [Accounts payable – pre-start-up position].

ANALYSIS

A. The cash position at the end of each month should be adequate to meet the cash requirements for the following month. If there is too littl
to be injected or cash paid out must be reduced. If there is too much cash on the premises, this money is not working for your business.
B. The cashflow projection, the profit and loss projection, the breakeven analysis and good cost control information are tools which, if used p
decisions that can increase profits to ensure success.
C. The projection becomes more useful when the estimated information can be compared with actual information as it develops. It is import
actual columns as the information becomes available. Utilise the cashflow projection to assist in setting new goals and planning operations f
this is to enter actual cash receipt amounts and cash paid out amounts in the Actual spreadsheet included in this file.
NAKA NAKA
12 MONTH CASHFLOW PROJECTION
Pre-startup 1 2 3 4 5 6 7 8 9 10 11 12 TOTAL

1. CASH ON THE PREMISES

(Beginning of month) $ 15,500 $15,500 $19,505 $ 23,100 $ 26,695 $ 30,980 $ 35,715 $ 40,900 $ 48,135 $ 55,880 $ 64,115 $ 74,360 $ 85,095
2. INCOME
Drinks $ - $20,400 $23,400 $ 25,200 $ 30,000 $ 33,000 $ 36,000 $ 42,000 $ 45,000 $ 48,000 $ 54,000 $ 57,000 $ 60,000 $ 474,000
3. TOTAL CASH RECEIPTS $20,400 $23,400 $ 25,200 $ 30,000 $ 33,000 $ 36,000 $ 42,000 $ 45,000 $ 48,000 $ 54,000 $ 57,000 $ 60,000 $ 474,000
4. TOTAL CASH AVAILABLE
(Before cash out) $ 15,500 $35,900 $42,905 $ 48,300 $ 56,695 $ 63,980 $ 71,715 $ 82,900 $ 93,135 $ 103,880 $ 118,115 $ 131,360 $ 145,095
5. OUTGOINGS
Salaries $ - $ 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
COGS $ - $10,200 $11,700 $ 12,600 $ 15,000 $ 16,500 $ 18,000 $ 21,000 $ 22,500 $ 24,000 $ 27,000 $ 28,500 $ 30,000 $ 237,000
Rentals $ - $ 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
Transport $ - $ 1,900 $ 2,400 $ 2,700 $ 3,500 $ 4,000 $ 4,500 $ 5,000 $ 5,500 $ 6,000 $ 6,500 $ 7,000 $ 7,500 $ 56,500
Marketing $ - $ 1,396 $ 2,805 $ 3,105 $ 4,015 $ 4,565 $ 5,115 $ 5,165 $ 5,655 $ 6,165 $ 6,655 $ 7,165 $ 7,675 $ 59,481
Electricityand rates $ - $ 300 $ 300 $ 500 $ 500 $ 500 $ 500 $ 700 $ 700 $ 700 $ 700 $ 700 $ 700 $ 6,800
Admin $ - $ 300 $ 300 $ 300 $ 300 $ 300 $ 300 $ 300 $ 300 $ 300 $ 300 $ 300 $ 300 $ 3,600
Cantene $ - $ 300 $ 300 $ 400 $ 400 $ 400 $ 400 $ 600 $ 600 $ 600 $ 600 $ 600 $ 600 $ 5,800
Subtotal $ - $16,396 $19,805 $ 21,605 $ 25,715 $ 28,265 $ 30,815 $ 34,765 $ 37,255 $ 39,765 $ 43,755 $ 46,265 $ 48,775 $ 393,181
Loan Repayment $ - $ -
Capital purchases $ - $ -
Start-up costs $ -
6. TOTAL CASH PAID OUT $ - $16,396 $19,805 $ 21,605 $ 25,715 $ 28,265 $ 30,815 $ 34,765 $ 37,255 $ 39,765 $ 43,755 $ 46,265 $ 48,775 $ 393,181
7. CASH POSITION
(End of month) $ 15,500 $19,505 $23,100 $ 26,695 $ 30,980 $ 35,715 $ 40,900 $ 48,135 $ 55,880 $ 64,115 $ 74,360 $ 85,095 $ 96,320
4,005 3,595 3,595 4,285 4,735 5,185 7,235 7,745 8,235 10,245 10,735 11,225
4,005 3,595 3,595 4,285 4,735 5,185 7,235 7,745 8,235 10,245 10,735 11,225
MARGIN 20% 15% 14% 14% 14% 14% 17% 17% 17% 19% 19% 19%
Month 1 2 3 4 5 6 7
Marketing
merchandisers salaries $ 950 $ 1,200 $ 1,350 $ 1,750 $ 2,000 $ 2,250 $ 2,500
Tables 375 75 45 75 75 75 75
Buckets 76 20 20 20 20 20 20
Merchandisers Transport 380 480 540 700 800 900 1000
T-shirts 250 70 70 70 70 70 70
Ice 760 960 1080 1400 1600 1800 1500
Road Shows 0 0 0 0 0 0 0
TOTAL $ 2,791 $ 2,805 $ 3,105 $ 4,015 $ 4,565 $ 5,115 $ 5,165

Number of Wholesalers
being supplied 19 24 27 35 40 45 50
Transport costs per
wholesaler if hiring $ 1,900 $ 2,400 $ 2,700 $ 3,500 $ 4,000 $ 4,500 $ 5,000
Avg Cost per Trip $ 100
Avg cost per trip own truck $ 100

Sales
drinks $ 5.00 4080 4680 5040 6000 6600 7200 8400
tissue $ - 0 0 0 0 0 0 0
dishwashing liquid $ - 0 0 0 0 0 0 0
Green Bar Soap $ - 0 0 0 0 0
Ice

Target per wholesaler

drinks 120
tissue 0
dishwashing liquid 0
Green Bar Soap 0

Target per truck

number of truckloads 3 3 3 3 3 3 4 4
drinks 600
tissue 0
dishwashing liquid 0
Green Bar Soap 0

COGS
drinks $ 2.50 $ 10,200.00 $ 11,700.00 $ 12,600.00 $ 15,000.00 $ 16,500.00 $ 18,000.00 $ 21,000.00
tissue $ - $ - $ - $ - $ - $ - $ - $ -
dishwashing liquid $ - $ - $ - $ - $ - $ - $ - $ -
Ice $ - $ - $ - $ - $ - $ - $ - $ -

$ 10,200.00 $ 11,700.00 $ 12,600.00 $ 15,000.00 $ 16,500.00 $ 18,000.00 $ 21,000.00

 8 9 10 11 12

$ 2,750 $ 3,000 $ 3,250 $ 3,500 $ 3,750

75 75 75 75 75
20 20 20 20 20
1100 1200 1300 1400 1500
70 70 70 70 70
1640 1800 1940 2100 2260
0 0 0 0 0
$ 5,655 $ 6,165 $ 6,655 $ 7,165 $ 7,675

55 60 65 70 75

$ 5,500 $ 6,000 $ 6,500 $ 7,000 $ 7,500

9000 9600 10800 11400 12000

0 0 0 0 0
0 0 0 0 0
0 0 0 0 0

4 5 5 5 5

$ 22,500.00 $ 24,000.00 $ 27,000.00 $ 28,500.00 $ 30,000.00

$ - $ - $ - $ - $ -
$ - $ - $ - $ - $ -
$ - $ - $ - $ - $ -

$ 22,500.00 $ 24,000.00 $ 27,000.00 $ 28,500.00 $ 30,000.00

Monthly cashflow projection
Enter company name here
Enter date here
Pre-startup Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 TOTAL
1. CASH ON THE PREMISES
(Beginning of month)
2,148 2,677 7,230 1,273 (4) 3,379 9,272 11,285 12,678 12,078 11,478
2. CASH RECEIPTS
(a) Cash sales 8,011 5,575 7,075 7,075 10,930 10,930 10,930 10,930 71,456
(b) Collections from credit accounts -
(c) Loan or other cash injection 4,200 5,000 3,600 4,500 17,300
3. TOTAL CASH RECEIPTS
[2a + 2b + 2c=3] - 12,211 10,575 10,675 7,075 10,930 15,430 10,930 10,930 - - - 88,756
4. TOTAL CASH AVAILABLE
(Before cash out) [1 + 3] - 14,359 13,252 17,905 8,348 10,926 18,809 20,202 22,215 12,678 12,078 11,478
5. CASH PAID OUT
(a) Purchases (merchandise) -
(b) Gross wages (excludes withdrawals) 2,915 2,640 2,900 2,900 2,900 2,900 2,900 2,900 22,955
(c) Payroll Expenses (taxes etc) -
(d) Outside services -
(e) Supplies (office and operating) -
(f) Repairs and maintenance 5,400 700 400 1,520 400 2,640 1,520 2,640 15,220
(g) Advertising -
(h) Travel expenses (including deliveries) 500 800 800 500 2,600
(i) Accounting and legal 580 500 250 250 500 250 250 250 2,830
(j) Rent 850 850 850 850 850 850 850 850 6,800
(k) Telephone 67 67 67 67 67 67 67 67 536
(l) Utilities 280 180 280 280 280 280 280 280 2,140
(m) Insurance 60 335 335 335 700 700 700 700 3,865
(n) Taxes (real estate etc) -
(o) Interest -
(p) Other expenses (Rank Fees) 750 750 750 750 1,250 1,250 1,250 1,250 8,000

-
(q) Miscellaneous (unspecified) 280 280
(r) Subtotal - 11,682 6,022 6,632 7,752 6,947 8,937 8,317 8,937 - - - 65,226
(s) Loan principal payment 600 600 600 600 600 600 600 600 4,800
(t) Capital purchases (30% Initial Rental) 10,000 10,000
(u) Other start-up costs -
(v) Reserve and/or escrow (specify) -
(w) Owner's withdrawal -
6. TOTAL CASH PAID OUT
[Total from 5a to 5w] - 11,682 6,022 16,632 8,352 7,547 9,537 8,917 9,537 600 600 600 80,026
7. CASH POSITION
(End of month) [4 minus 6] - 2,677 7,230 1,273 (4) 3,379 9,272 11,285 12,678 12,078 11,478 10,878
ESSENTIAL OPERATING DATA
(Non-cashflow information)
A. Sales volume (USD) -
B. Accounts receivable (end of month)
C. Bad debt (end of month) -
D. Inventory on hand (end of month)
E. Accounts payable (end of month)
F. Depreciation -