If my beginning cash balance is 100,000 with current A/R 50,000 net terms of 30, sales by quarter 100,000 and my COGS is 70%. rent = $2500, payroll: 2,000 per month, payroll taxes: paid weekly at a rate of 15% of payroll. how do I build a projected cash flow for the year, by month?

If my beginning cash balance is 100,000 with current A/R 50,000 net terms of 30, sales by quarter 100,000 and my COGS is 70%. rent = $2500, payroll: 2,000 per month, payroll taxes: paid weekly at a rate of 15% of payroll. how do I build a projected cash flow for the year, by month?

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter6: Managing Cash Flow

Section: Chapter Questions

Problem 4DQ

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Concept explainers

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.

Question

If my beginning cash balance is 100,000 with
current A/R 50,000 net terms of 30, sales by
quarter 100,000 and my COGS is 70%. rent =
$2500, payroll: 2,000 per month, payroll
taxes: paid weekly at a rate of 15% of payroll.
how do I build a projected cash flow for the
year, by month?

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