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Projected Cash Flow Statement

CASH FLOW STATEMENT:


In financial accounting, a cash flow statement,
also known as statement of cash flows or funds flow statement, is a financial statement concerned with the flow of cash in and cash out of the business.

PROJECTED CASH FLOW STATEMENT:


Cash Projections enables you to see cash flowing in and out of your organisation so that you can plan for surpluses as well

as deficits.
The Cash Flow Projection is a forecast of your organization's cash income and expenditures on weekly or monthly basis.

Same as Preparing a Budget.

OBJECTIVE:
To determine shortages and excesses in Cash

The projected Cash Flow Statement seeks to answer questions such as:
How much working capital will we have? How much additional capital might the firm need if assumptions for growth change?

Will we have enough money to make payroll?


Can we make our debt payments?

CALCULATION:
CASH POSITION = TOTAL CASH TOTAL CASH OUTFLOWS WHERE, TOTAL CASH AVAILABLE =

CASH AT BEGINNING + TOTAL CASH INFLOWS

COMPONENTS OF CASH INFLOWS:


CASH SALES COLLECTION FROM DEBTORS/RECEIVABLES LOANS

COMPONENTS OF CASH OUTFLOWS:


RAW MATERIAL/PURCHASES PAYROLL EXPENSES RENT

PROFESSIONAL FEES
OFFICE SUPPLIES

ADVERTISING
POSTAGE REPAIRS AND MAINTENANCE TELEPHONE BILLS

CONTD:
UTILITIES

LOAN REPAYMENTS
INSURANCE TAXES INTEREST OTHER MISCELLANEOUS EXPENSES

Components of Projected Cashflow Statement over 3 financial years (Sample) - ABC Company, Cashflow for the Year
Ended Cash flow statement shows the cash position of the firm at any month. Cash does not equate to profits because revenues and expenses are collected or paid at varied times. Items 1. Cash at Beginning Month 2. Cash Receipts/Inflows Cash Sales Collections from Debtors/Receivables Loans or Other Capital Cash Injection 3. Total Inflows 4. Total Cash Available 5. Cash Outflows/Paid Out = Operating Costs (e.g) (a) Raw Material Purchases (b) Payroll Expenses (Salaries) (c) Rent (d) Other Miscellaneous Expenses All of 5 All of 2 (1)+(3 ) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Yr End

6. Total Cash Outflows

7. Total Cash Inflows/(Outflows) 8. Cash Position/ Closing Balance for the Month (Total Cash Available minus Total Cash Outflows)

(3) - 6)

(4) - (6)

THE END THANK YOU