Develop cash management plans/cash flow projections for the ten day period. You are required to run projections outlining the best case, worst case and most likely scenarios.
Cash Flow Exercise
Cash on hand (beginning of day) – Day 1 $ 3,000
Bills Due:
Rent due – Day 4 2,500
Phones due – Day 8 300
Office supplies – due now 250
Accountant – past due 1,000
Printing – past due 500
Health insurance 2,500
Software support due – Day 8 500
Equipment leases due – Day 7 800
Bank loan payment due – Day 8 1,100
Payroll – Day 4 (assume this to be the last working day of month):
Employees (net) 15,000
Management (net) 5,000
Owners (net) 5,000
Payroll tax (net X 35%) 8,750
Average cash collected per day = $2,500
Large A/R past due (any day now)
$15,000
14,000
11,000
Mail delivered six days a week
DEVELOP A CASH FLOW PLAN FOR THIS COMPANY
THROUGH FOR A PERIOD OF TEN (10) DAYS.