- Sales: The marketing expert and the newly created customer service personnel developed sales projections based on historical data and forecast research.
- Other cash receipt: Rental income $15,000 per month.
- Production material: The production manager forecasted material cost based on cost quotes from reliable vendors, the average of which is 50 percent of sales.
- Other production cost: Based on historical cost data, this cost on an average is 30 percent of the material cost and occurs in the month after material purchase.
- Selling and marketing expense: Five percent of sales
- General and administrative expense: Twenty percent of sales
- Interest payments: Payable in December â€“ $75, 000
- Tax payments: Quarterly due 15th of April, July, October, and January â€“ $15,000
- Minimum cash balance desired: â€“ $ 25,000 per month
- Cash balance start of month (December):$15,000
- Available short-term annual interest rate is 8 percent, long-term debt rate is 9 percent, and long-term equity is 10 percent. All funds would be available the first month when the firm encounters a deficit.
- Dividend payment: None
Total Cash Inflow Cash Outflows Material Purchases (reference only) Payment for Material Purchase 100% in month after purchase Other Cash Payments Other production cost 30% of Material cost paid month after Purchase Selling and Marketing Expense General and Adminstrative expenses Interest Payment Tax Payment Dividend Payment Total Cash Outlfows Net Cash Gain/(Loss) Cash Flow Summary Cash Balance start of the month Net Cash Gain/loss Cash Balance at end of month Minium cash Balance desired Surplus cash (deficit) External Financing Summary External Financing Balance at start of month New Financing Required (negative amount from cash suplus (deficit) External Financing Requirement External Financing Balance
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