Cash Flow (12 months) Enter Company Name Here Fiscal Year Begins: Jan-22

Pre-Startup Total Item

Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22
EST EST
Cash on Hand (beginning of
1,500,000 700,000 612,001 531,502 473,503 430,504 417,505 419,506 451,507 483,508 560,509 649,960 739,411 700,000
month)

CASH RECEIPTS
Cash Sales 0 7,500 30,000 45,000 75,000 90,000 120,000 120,000 165,000 177,450 177,450 192,600

Collections fm CR accounts

Loan/ other cash inj.

TOTAL CASH RECEIPTS 0 0 7,500 30,000 45,000 75,000 90,000 120,000 120,000 165,000 177,450 177,450 192,600 0

Total Cash Available (before

1,500,000 700,000 619,501 561,502 518,503 505,504 507,505 539,506 571,507 648,508 737,959 827,410 932,011 700,000
cash out)

CASH PAID OUT

Purchases (merchandise) 800,000

Purchases (specify) 500 500 500 500 500 500 500 500 500 500 500 500

Purchases (specify)
Gross wages (exact
50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000
withdrawal)
Payroll expenses (taxes, etc.)

Outside services

Supplies (office & oper.)

Repairs & maintenance

Advertising 33,333 33,333 33,333 33,333 33,333 33,333 33,333 33,333 33,333 33,333 33,333 33,333 4,166

Car, delivery & travel

Accounting & legal

Rent 4,166 4,166 4,166 4,166 4,166 4,166 4,166 4,166 4,166 4,166 4,166 4,166
Telephone

Utilities

Insurance

Taxes (real estate, etc.)

Interest

Other expenses (specify)

Other (specify)

Other (specify)

Miscellaneous

SUBTOTAL 800,000 87,999 87,999 87,999 87,999 87,999 87,999 87,999 87,999 87,999 87,999 87,999 87,999 4,166

Loan principal payment

Capital purchase (specify)

Other startup costs

Reserve and/or Escrow

Owners' Withdrawal

TOTAL CASH PAID OUT 800,000 87,999 87,999 87,999 87,999 87,999 87,999 87,999 87,999 87,999 87,999 87,999 87,999 4,166

Cash Position (end of month) 700,000 612,001 531,502 473,503 430,504 417,505 419,506 451,507 483,508 560,509 649,960 739,411 844,012 695,834

ESSENTIAL OPERATING DATA (non cash flow information)

Sales Volume (dollars)

Accounts Receivable

Bad Debt (end of month)

Inventory on hand (eom)

Accounts Payable (eom)

Depreciation
Notes on Preparation
Note: You may want to print this information to use as reference later. To
delete these instructions, click the border of this text box and then press
the DELETE key.

Refer back to your Profit & Loss Projection. Line-by-line ask yourself
when you should expect cash to come and go. You have already done a
sales projection, now you must predict when you will actually collect from
customers. On the expense side, you have previously projected
expenses; now predict when you will actually have to write the check to
pay those bills. Most items will be the same as on the Profit & Loss
Projection. Rent and utility bills, for instance, are usually paid in the month
they are incurred. Other items will differ from the Profit & Loss view.
Insurance and some types of taxes, for example, may actually be payable
quarterly or semiannually, even though you recognize them as monthly
expenses. Just try to make the Cash Flow as realistic as you can line by
line. The payoff for you will be an ability to manage and forecast working
capital needs. Change the category labels in the left column as needed to
fit your accounting system.

Note that lines for 'Loan principal payment' through 'Owners' Withdrawal'
are for items that always are different on the Cash Flow than on the Profit
& Loss. Loan Principal Payment, Capital Purchases, and Owner's Draw
simply do not, by the rules of accounting, show up on the Profit & Loss
Projection. They do, however, definitely take cash out of the business, and
so need to be included in your Cash plan. On the other hand, you will not
find Depreciation on the Cash Flow because you never write a check for
Depreciation. Cash from Loans Received and Owners' Injections go in the
"Loan/ other cash inj." row. The "Pre-Startup" column is for cash outlays
prior to the time covered by the Cash Flow. It is intended primarily for new
business startups or major expansion projects where a great deal of cash
must go out before operations commence. The bottom section,
"ESSENTIAL OPERATING DATA", is not actually part of the Cash model,
but it allows you to track items which have a heavy impact on cash. The
Cash Flow Projection is the best way to forecast working capital needs.
Begin with the amount of Cash on Hand you expect to have. Project all
the Receipts and Paid Outs for the year. If CASH POSITION gets
dangerously low or negative, you will need to pump in more cash to keep
the operation afloat. Many profitable businesses have gone under
because they could not pay the bills while waiting for money to flow in.
Your creditors do not care about profit; they want to be paid with cash.
Cash is the financial lifeblood of your business.