Excel

Excel Skills
Skills || Business
Business Plan
Plan Cash
Cash Flow
Flow Forecast
Forecast Template
Template

About
About this
this template
template
This
This unique
unique template
template enables
enables users
users to
to create
create cash
cash flow
flow projections
projections for
for aa business
business plan
plan which
which includes
includes 12
12 monthly
monthly perio
peri
template
includes
a
detailed
income
statement,
cash
flow
statement
and
balance
sheet.
The
cash
flow
projections
template includes a detailed income statement, cash flow statement and balance sheet. The cash flow projections are
are
assumptions
assumptions and
and the
the turnover
turnover amounts,
amounts, gross
gross profit
profit percentages,
percentages, expense
expense amounts,
amounts, capital
capital expenditure
expenditure amounts
amounts and
and lo
l
by
by the
the user.
user. The
The monthly
monthly and
and annual
annual reporting
reporting periods
periods are
are all
all based
based on
on aa single
single user
user defined
defined start
start date.
date. This
This tem
tem
businesses
businesses but
but can
can also
also be
be used
used for
for service
service based
based businesses
businesses by
by simply
simply entering
entering aa 100%
100% value
value in
in the
the gross
gross profit
profit perce
perce
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the business
business plan
plan cash
cash flow
flow forecast
forecast template.
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plan
plan which
which includes
includes 12
12 monthly
monthly periods
periods and
and 55 annual
annual periods.
periods. The
The
sheet.
The
cash
flow
projections
are
based
on
a
number
sheet. The cash flow projections are based on a number of
of default
default
s,
s, capital
capital expenditure
expenditure amounts
amounts and
and loan
loan amounts
amounts that
that are
are specified
specified
e user
le
user defined
defined start
start date.
date. This
This template
template is
is ideal
ideal for
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trade based
based
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100% value
value in
in the
the gross
gross profit
profit percentage
percentage input
input cells.
cells.

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solutions than
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Excel templates.
templates. Most
Most Excel
Excel templates
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input.
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also
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advanced
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input and
and include
include comprehensive
comprehensive step
step by
by step
step instructions.
instructions.

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Weve created
created this
this sample
sample to
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Excel Skills | Business Plan Cash Flow Forecast Template

Instructions

www.excel-skills.com

This unique template enables users to create cash flow projections for a business plan which includes 12 monthly periods
and five annual periods. The template includes a detailed income statement, cash flow statement and balance sheet. The
cash flow projections are based on a number of default assumptions and the turnover amounts, gross profit percentages,
expense amounts, capital expenditure amounts and loan amounts that are specified by the user. The monthly and annual
reporting periods are all based on a single user defined start date. This template is ideal for trade based businesses but can
also be used for service based businesses by simply entering a 100% value in the gross profit percentage input cells.

Note: We have included 12 monthly and 5 annual reporting periods in this template because this format is frequently required
by financial institutions when submitting business plans. If you only require annual cash flow projections, refer to our Annual
Cash Flow Projections template and if you only require monthly cash flow projections, refer to our Monthly Cash Flow
Projections template.
The following sheets are included in the template:
Assumptions - this sheet includes the default assumptions on which the monthly & annual cash flow projections are based.

IncState - this sheet includes a detailed monthly income statement for 12 monthly periods and 5 annual periods. The first
year's turnover amounts, gross profit percentages and expenses need to be entered by the user and the subsequent years'
values are calculated based on the assumptions that are specified on the Assumptions sheet.

CashFlow - this sheet includes a detailed monthly cash flow statement for 12 monthly and 5 annual periods. Only the capital
expenditure and shareholders' contribution amounts for the first year need to be entered by the user. All the values for
subsequent years and all the other line items on the cash flow statement are calculated automatically.
BalanceSheet - all balance sheet calculations are based on the template assumptions and the monthly income statement
and cash flow statement calculations. No user input is required on this sheet.

Loans - this sheet includes a detailed monthly amortization table which is used to calculate the monthly interest and capital
repayment amounts that are included on the detailed income statement and cash flow statement. Additional loan amounts
(after the initial start-up financing) can be entered on this sheet.

Template Assumptions
Business Name

The business name that is entered in cell B4 on the Assumptions sheet is used as a heading on all the other sheets that are
included in the template.
Start Date

The monthly and annual reporting periods on the income statement, cash flow statement and balance sheet are determined
based on the start date that is entered in cell B5 on the Assumptions sheet. Users are therefore able to change the template
reporting periods by simply changing the date in a single input cell.
Turnover

Monthly turnover projections for the first year should be entered on the IncState sheet in row 5. The annual turnover growth
percentages that are specified in row 9 on the Assumptions sheet is then used to calculate the turnover amounts for year 2
to 5.
Gross Profit %

A monthly gross profit percentage forecast for the first year should be entered on the IncState sheet in row 10 and the annual
gross profit percentage forecast for years 2 to 5 should be entered in row 13 on the Assumptions sheet. Gross profit amounts
are calculated by multiplying the appropriate turnover amount by the gross profit percentage. Cost of sales amounts are then
calculated by simply deducting the gross profit amounts from the turnover amounts.
Page 3 of 19

Excel Skills | Business Plan Cash Flow Forecast Template

Instructions

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Page 4 of 19

Excel Skills | Business Plan Cash Flow Forecast Template

Instructions

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Expenses

The IncState sheet includes 23 default expense accounts. The default expense accounts can be edited by simply entering a
new description and additional expenses can be added by simply inserting the required number of rows anywhere above the
total row, entering a description for the expense and entering the appropriate monthly expense forecasts for each of the
monthly periods in the first year. The annual expense amounts in year 2 to 5 are determined by multiplying the annual
expense amounts of the previous annual period by the appropriate inflation percentage which is specified in row 17 on the
Assumptions sheet.
Note: All income & expense amounts should be entered exclusive of any sales tax that may be applicable.
Depreciation

The condition of all fixed assets deteriorates over time and asset depreciation is therefore usually recorded in the income
statement in order to account for the decrease in value of fixed assets. Although depreciation is a non-cash accounting
adjustment and therefore does not have a direct impact on cash flow calculations, we have included depreciation in the
template assumptions in order to account for the tax effect of wear & tear tax allowances.

The depreciation amounts for each monthly period in the first year need to be entered in row 38 on the IncState sheet and
the annual depreciation amounts for year 2 to 5 need to be entered in row 18 on the Assumptions sheet. The depreciation
amounts are included separately on the income statement below the Expenses section and added back from the profit or
loss for the period on the cash flow statement.

Note: The depreciation amounts need to be calculated based on the effective depreciation rate for each class of fixed assets
after taking the remaining useful life of the start-up assets into account and applying the appropriate effective depreciation
rates to all capital expenditure amounts. For the purpose of the cash flow projections, it is assumed that the wear & tear
allowances (for income tax purposes) are the same as the depreciation rates.
Cash Flow Statement Input Amounts

Most of the amounts on the cash flow statement are automatically calculated based on the amounts that are entered on the
IncState sheet and the balance sheet calculations on the BalanceSheet sheet. User input is limited to specifying the
appropriate capital expenditure and shareholders contribution amounts.

The capital expenditure that will be incurred in the first year should be entered in row 21 on the CashFlow sheet. The annual
capital expenditure totals for year 2 to 5 need to be entered in row 22 on the Assumptions sheet. All of these amounts should
be entered as negative values.

The shareholder contribution amounts for the first year should be entered in row 25 on the CashFlow sheet. The annual
shareholder contribution totals for year 2 to 5 need to be entered in row 23 on the Assumptions sheet. All of these amounts
should be entered as positive values.

Note: The proceeds from additional loans also forms part of the cash flow statement calculations but these amounts should
be entered on the Loans sheet in column C.
Working Capital

The inventory, debtors and creditors days assumptions that are specified on the Assumptions sheet are used in order to
calculate the monthly & annual closing balances for inventory. debtors and creditors on the balance sheet. We believe that
this is the easiest and most accurate technique that can be used in order to estimate working capital balances at the end of
each period.

Page 5 of 19

Excel Skills | Business Plan Cash Flow Forecast Template

Instructions

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The inventory days assumption is multiplied by the daily cost of sales average to determine the inventory closing balance at
the end of each monthly or annual period. The daily cost of sales average is calculated by simply dividing the monthly or
annual cost of sales projection by the number of days in the particular month or 365 days in the case of the annual periods.
The number of days that are included in each monthly reporting period are calculated in row 21 on the balance sheet.

The debtors days assumption is multiplied by the daily average turnover in order to determine the debtors closing balance at
the end of each monthly or annual period. The daily average turnover is calculated by simply dividing the monthly or annual
turnover amount by the number of days in the particular month or 365 days in the case of the annual periods. The average
trading terms that are negotiated with customers can be used in order to estimate the debtors days that should be entered in
the template assumptions. If products are not sold on credit, a nil value should be entered for this assumption.

The creditors days assumption is multiplied by the sum of the monthly or annual cost of sales amounts and the total
expenses and the result is divided by the number of days in the particular monthly period or 365 for annual periods in order
to calculate the creditors closing balance at the end of the particular period. The value that is entered for this assumption
should therefore be carefully considered. Even if the average trading terms with suppliers result in payments being due 30
days after the invoice date, you should remember that a lot of expenses are usually settled on a cash basis (like salaries &
wages). You should therefore not only consider supplier trading terms when deciding on an appropriate value to enter in this
template assumption but also the percentage of expenses and stock purchases that are settled on a cash basis.
Start-up Balances

This section of the assumptions relates to the balance sheet balances at the start of the cash flow projection period. If you
need to compile a business plan for an existing business, it should be simple enough to obtain the opening balance sheet
account balances. Also, if the business is being acquired from another entity, the opening balances should be entered based
on the values that are listed in the acquisition agreement. If the business plan is being compiled for an entirely new business
venture, all the start-up balances should be nil.

Note: All equity and liability balances should be entered as negative values and the total of all the start-up balance sheet
balances should always be nil. We have added conditional formatting to the Start-up balances section on the Assumptions
sheet in order to highlight all the values in orange if the total does not equal nil.
Loan Terms

The loan terms that are entered in this section of the assumptions are applied to the start-up long term loan amount and the
additional loan amounts that are entered in column C on the Loans sheet in order to compile the monthly loan amortization
table on the Loans sheet. The loan terms consist of the annual interest rate, loan repayment period in years and an interest
only selection. If no interest is charged on long term loans, simply select the "Yes" option from the list box and no loan
repayments will be included in the cash flow projections (only the interest that is charged). The interest and loan repayment
amounts that are calculated on the Loans sheet are then automatically included in the monthly & annual cash flow
projections.
Note: The maximum loan repayment period that can be specified is 10 years.
Taxation

The income tax percentage that is specified in this input cell is applied to the monthly or annual net profit in order to calculate
a monthly income tax provision. We have also assumed that all income tax liabilities are settled on a bi-annual basis (every
six months) in accordance with provisional taxation principles. The monthly tax amount is therefore accrued to a provision for
taxation and the negative cash flow resulting from the bi-annual payment of income tax will be reflected in the taxation paid
line on the monthly cash flow statement (row 17).
Page 6 of 19

Excel Skills | Business Plan Cash Flow Forecast Template

Instructions

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Note: Because we assume that income tax liabilities are settled bi-annually according to provisional tax principles, there
would be no provision for taxation at the end of any of the annual reporting periods.

Page 7 of 19

Excel Skills | Business Plan Cash Flow Forecast Template

Instructions

www.excel-skills.com
Monthly Income Statement

A detailed income statement is included on the IncState sheet. As we've mentioned before, users need to enter the monthly
turnover amounts, gross profit percentages and expense amounts for the first year and all the other income statement
calculations are automated.

Note: All the rows that require user input have been highlighted in yellow in column A. The monthly amounts in these rows
should be entered but be careful not to replace the formulas in the columns that contain the annual totals.

The interest amounts that are included on the income statement are calculated on the Loans sheet based on the start-up
long term loan balance on the Assumptions sheet, the monthly additional loan amounts that are entered in column C on the
Loans sheet and the loan terms that are specified on the Assumptions sheet.

Note: Calculations of the interest cover, return on equity (ROE) and return on net assets (RONA) financial ratios have been
included below the monthly income statement.

Monthly Cash Flow Statement

A detailed cash flow statement is included on the CashFlow sheet. As we've mentioned before, users are required to enter
the monthly capital expenditure and shareholders' contribution amounts on this sheet and all the other cash flow statement
calculations are automated.

Note: All the rows that require user input have been highlighted in yellow in column A. The monthly amounts in these rows
should be entered but be careful not to replace the formulas in the columns that contain the annual totals.

The monthly or annual profit or loss, interest and taxation amounts are calculated on the income statement. Depreciation
amounts are entered on the income statement and added back from the profit or loss on the cash flow statement. The
interest paid amount is deducted after being added back from the profit or loss and the taxation paid is calculated by
deducting the income statement taxation charge from the movement in the provision for taxation which is calculated on the
balance sheet.

The property, plant & equipment purchases line relates to the acquisition of fixed assets with a useful life of more than one
year. Monthly capital expenditure amounts should be entered as negative values and are added to the property, plant &
equipment line on the balance sheet.

All amounts that are contributed by the shareholders of the business should be entered as positive values in the
shareholders' contributions line and are added to the shareholders' contributions line on the balance sheet.

The loan repayments that are included on the cash flow statement are calculated on the Loans sheet based on the start-up
long term loans balance on the Assumptions sheet, the monthly additional loan amounts that are entered on the Loans sheet
and the loan terms that are specified on the Assumptions sheet. Note that these amounts only include the capital portion of
the loan repayments, not the interest.

Monthly Balance Sheet

All balance sheet balances are calculated automatically from the template assumptions and the calculations on the monthly
& annual income statement and cash flow statement. The property, plant & equipment balance is calculated by adding the
capital expenditure on the CashFlow sheet to the start-up property, plant & equipment balance before deducting the
depreciation amounts which are entered on the income statement.

Page 8 of 19

Excel Skills | Business Plan Cash Flow Forecast Template

Instructions

www.excel-skills.com

All working capital balances are calculated based on the days that are specified in the template assumptions, while the cash
balance is linked to the closing cash balance on the CashFlow sheet. The provision for taxation is calculated from the income
tax line on the IncState sheet and the assumption is that the entire income tax liability is settled bi-annually based on
provisional tax principles.

Page 9 of 19

Excel Skills | Business Plan Cash Flow Forecast Template

Instructions

www.excel-skills.com

The shareholders contributions balance is calculated by adding the monthly amounts on the cash flow report to the start-up
balance that is specified in the template assumptions, while retained earnings is calculated based on the profit or loss line on
the IncState sheet. Long term loan balances are calculated on the Loans sheet.

Note: The financial ratios below the balance sheet are all based on the balances that are included on the balance sheet. We
recommend that you review the formulas that are included in these cells in order to determine how these ratios are
calculated.

Interest & Capital Repayment Amounts

The Loans sheet includes a detailed amortization table which is used for the calculation of the monthly & annual interest and
capital repayment amounts which are included in the cash flow projections. The start-up long term loan balance in included
in the first cell in column C and any additional monthly loan advances should also be entered in the additional financing
column. All interest and loan repayment calculations are based on the amounts in this column and the loan terms that are
included at the top of the sheet (specified on the Assumptions sheet).

Note: All the interest and loan repayment calculations on the Loans sheet are automated. The only user input that is required
on this sheet is entering the additional loan amounts in column C.

The loan amortization calculations can also be compiled for interest only loans by simply selecting the "Yes" option from the
Interest Only list box on the Assumptions sheet. If this loan interest option is selected, the projected cash flow calculations
will not include any loan repayments. Also note that the maximum loan period that can be specified is 10 years.

Help & Customization

If you experience any difficulty while using this template and you are not able to find the appropriate guidance in these
instructions, please e-mail us at support@excel-skills.com for assistance. This template has been designed with flexibility in
mind to ensure that it can be used in most business environments. If however you need an Excel based template that is
customized specifically for your business requirements, please e-mail our Support function and provide a brief explanation of
your requirements.

Copyright

This template remains the intellectual property of www.excel-skills.com and is protected by international copyright laws. Any
publication or distribution of this template outside the scope of the permitted use of the template is expressly prohibited. In
terms of the permitted use of this template, only the distribution of the template to persons within the same organisation as
the registered user or persons outside the organisation who can reasonably be expected to require access to the template as
a direct result of the use of the template by the registered user is allowed. Subsequent distribution of the template by parties
outside of the organisation is however expressly prohibited and represents an infringement of international copyright laws.

Page 10 of 19

Example Trading (Pty) Limited

Cash Flow Projections - Assumptions
Business Name
Start Date

Example Trading (Pty) Limited

3/1/2015

Turnover
Monthly turnover projections for the first year need to be entered on the IncState worksheet.
Annual Turnover Growth %

Year 2

Year 3

5.0%

5.0%

On
On this
this sheet:
sheet:

Year
Year&
5 annual
Most
Most4of
of the
the monthly
monthly
&
annual cash
cash flow
flow forecast
forecast calculations
calculations are
are based
based
on
the
that
10.0%
10.0%
on
the assumptions
assumptions
that are
are entered
entered on
on this
this sheet.
sheet. The
The monthly
monthly turnover,
turnover,
gross
gross profit
profit percentages
percentages and
and expense
expense amounts
amounts for
for the
the first
first year
year however
however
need
need to
to be
be entered
entered on
on the
the "IncState"
"IncState" sheet.
sheet. The
The reporting
reporting periods
periods that
that are
are
included
included on
on the
the income
income statement,
statement, cash
cash flow
flow statement
statement and
and balance
balance sheet
sheet
Year
4 determined
Year
5
are
based
on
are
determined
based
on the
the start
start date
date that
that is
is specified
specified in
in cell
cell B5.
B5.

Gross Profit %
Monthly gross profit percentages for the first year need to be entered on the IncState worksheet.
Gross Profit %

Year 2

Year 3

38.0%

38.0%

40.0%

40.0%

Expenses
Monthly expense projections for the first year need to be entered on the IncState worksheet.
Annual Expenditure Inflation %
Annual Depreciation Charges

Year 2

Year 3

Year 4

Year 5

6.0%

6.0%

6.0%

6.0%

195,000

240,000

250,000

215,000

Cash Flow Statement Input

Cash flow statement input amounts for the first year need to be entered on the CashFlow worksheet.
Year 2
Purchases of property, plant & equipment

Year 3

(125,000)

Proceeds from shareholders' contributions

Proceeds from loans

Year 4

(250,000)
###

Enter in column C on the Loans sheet.

Working Capital
Inventory Days

25

Debtors Days

30

Creditors Days

15

Start-up Balances
Property, Plant & Equipment

800,000

Inventory

140,000

Debtors

250,000

Cash

21,000

Shareholders' Contributions

(1,000)

Retained Earnings
Long Term Loans
Creditors
Provision for Taxation

(1,100,000)
(110,000)
-

Loan Terms
Interest Rate

9.0%

Repayment Term (in years)

5.0

Interest Only

No

Taxation
Income Tax %

Year 5

(200,000)

28.0%

Note: It is assumed that income tax is paid on a bi-annual basis (every 6 months).

Page 11 of 19

(150,000)
###

Example Trading (Pty) Limited

Cash Flow Projections - Income Statement
www.excel-skills.com
Mar-2015

Apr-2015

May-2015

Jun-2015

Jul-2015

Aug-2015

Sep-2015

Oct-2015

Nov-2015

Dec-2015

Jan-2016

Feb-2016

Year-2016

Turnover

300,000

340,000

320,000

321,000

305,000

320,000

315,000

300,000

320,000

330,000

328,000

310,000

3,809,000

Cost of Sales

195,000

217,600

208,000

205,440

192,150

201,600

198,450

189,000

201,600

207,900

206,640

195,300

2,418,680

Gross Profit

105,000

122,400

112,000

115,560

112,850

118,400

116,550

111,000

118,400

122,100

121,360

114,700

1,390,320

35.0%

36.0%

35.0%

36.0%

37.0%

37.0%

37.0%

37.0%

37.0%

37.0%

37.0%

37.0%

36.5%

2,000

2,000

2,000

2,000

2,000

2,000

2,000

2,000

2,000

2,000

2,000

24,000

5,000

43,000

13,000

5,000

5,000

131,000

250

250

250

250

250

3,000

860

860

860

860

860

9,420

4,200

8,000

759

Gross Profit %
Expenses
Accounting Fees
Advertising & Marketing
Bank Charges
Cleaning Expenses
Computer Expenses
Consumables
Electricity & Water
Entertainment
Equipment Hire
Insurance

2,000

2,000

2,000

Legal Fees

Motor Vehicle Expenses

Postage

100

100

Printing & Stationery

300
-

Professional Fees
Rent
Repairs & Maintenance
Salaries & Wages
Security
Subscriptions
Telephone & Fax

On
sheet:
2,000
Onthis
this
sheet:

This
sheet
income
This
sheet includes
includes
detailed
income statement
statement
for 12
12 monthly
monthly
& 55 annual
annual
periods. The
The
5,000
5,000aa detailed
10,000
5,000 for
5,000 &
25,000 periods.
5,000
monthly
turnover,
gross
profit
percentages
and
expense
amounts
for
the
first
year
need
monthly
turnover,
gross
profit
percentages
and
expense
amounts
for
the
first
year
need to
to be
be
250
250
250
250
250
250
250
entered
on
this
sheet
and
all
the
other
amounts
are
automatically
calculated.
Rows
that
entered on this sheet and all the other amounts are automatically calculated. Rows that
500
500
800
800
800
860
860
require
user
input
in
the
monthly
columns
are
indicated
with
yellow
highlighting
in
column
A.
require user input in the monthly columns are indicated with yellow highlighting in column A.
Additional
expenses
This
for
- ifif required.
3,800
Additional
expenses- can
can be
be added
added
required.
This template
template-can
can also
also be
be used
used
for service
service
based
businesses
The
monthly
based1,250
businesses by
by simply
entering
100% gross
gross
profit percentage.
percentage.
The 780
monthly reporting
reporting
-simply entering
- aa 100%
- profit
2,300
200
periods
are determined by
the start
is
cell
"Assumptions"
periods
start date
date that
that1,000
is specified
specified in
in
cell B5
B5 on
on the
the
"Assumptions"
1,000 are determined
1,000 by the 1,000
1,000
1,200
1,200
sheet.
sheet.

10,000
-

2,000

2,000

2,000
-

100

100

100

100

300

300

300

300

10,000
800

10,000
-

10,000

22,850

22,850

22,850

22,850

325

325

325

325

325

2,510

2,510

2,510

2,300

2,300

1,200

1,200

1,200

5,289
13,400

12,000

18,000

2,300

2,300

2,300

2,300

25,800

74,000

1,800

100

100

100

100

100

100

1,200

300

300

300

300

300

300

300

3,600

32,000

780

12,000

1,200

10,000

22,850

2,510

10,000

74,000

18,000

1,200

1,800

10,000
-

32,000
10,000
-

10,000
4,300

10,000
-

10,000
-

10,000
-

120,000
5,880

22,850

22,850

22,850

22,850

22,850

22,850

22,850

274,200

325

325

325

325

325

325

325

3,900

3,200

2,510

2,510

Training

Uniforms

2,510
2,530

2,510
12,000
-

2,510

2,510

2,510

2,510

3,200
30,120
12,000
2,530

Total Expenses

48,085

46,835

52,935

124,935

67,435

72,155

52,225

103,695

89,995

56,454

47,695

51,895

814,339

Depreciation

13,333

13,333

14,167

14,167

14,167

15,417

15,417

15,417

15,417

15,417

15,417

15,417

177,083

Profit / (Loss) before Interest & Tax

43,582

62,232

44,898

(23,542)

31,248

30,828

48,908

(8,112)

12,988

50,229

58,248

47,388

398,898

Interest

8,250

8,141

8,030

7,919

8,558

8,435

8,311

8,187

8,061

7,935

7,808

7,679

97,315

Taxation

9,893

15,145

10,323

(8,809)

6,353

6,270

11,367

(4,564)

1,380

11,842

14,123

11,118

84,443

25,439

38,946

26,545

(22,652)

16,337

16,123

29,230

(11,735)

3,547

30,452

36,317

28,590

217,140

8.5%

11.5%

8.3%

(7.1%)

5.4%

5.0%

9.3%

(3.9%)

1.1%

9.2%

11.1%

9.2%

5.7%

Profit / (Loss) for the year

Profit / (Loss) %

Interest Cover
Return on Equity (ROE)
Return on Net Assets (RONA)

5.3

7.6

5.6

(3.0)

3.7

3.7

5.9

(1.0)

1.6

6.3

7.5

6.2

4.1

96.2%

59.6%

28.9%

(32.5%)

19.0%

15.8%

22.2%

(9.8%)

2.9%

19.8%

19.1%

13.1%

99.3%

2.3%

3.4%

2.3%

(2.0%)

1.3%

1.3%

2.4%

(1.0%)

0.3%

2.5%

3.0%

2.3%

17.7%

Page 12 of 19

Example Trading (Pty) Limited

Cash Flow Projections - Income Statement
www.excel-skills.com
Year-2017

Year-2018

Year-2019

Year-2020

Turnover

3,999,450

4,199,423

4,619,365

5,081,301

Cost of Sales

2,479,659

2,603,642

2,771,619

3,048,781

Gross Profit

1,519,791

1,595,781

1,847,746

2,032,520

38.0%

38.0%

40.0%

40.0%

Gross Profit %
Expenses
Accounting Fees
Advertising & Marketing

25,440

26,966

28,584

30,299

138,860

147,192

156,023

165,384

Bank Charges

3,180

3,371

3,573

3,787

Cleaning Expenses

9,985

10,584

11,219

11,893

Computer Expenses

8,480

8,989

9,528

10,100

Consumables

5,606

5,943

6,299

6,677

Electricity & Water

14,204

15,056

15,960

16,917

Entertainment

12,720

13,483

14,292

15,150

Equipment Hire

19,080

20,225

21,438

22,725

Insurance

27,348

28,989

30,728

32,572

Legal Fees

78,440

83,146

88,135

93,423

Motor Vehicle Expenses

1,908

2,022

2,144

2,272

Postage

1,272

1,348

1,429

1,515

Printing & Stationery

3,816

4,045

4,288

4,545

33,920

35,955

38,113

40,399

127,200

134,832

142,922

151,497

6,233

6,607

7,003

7,423

290,652

308,091

326,577

346,171

Security

4,134

4,382

4,645

4,924

Subscriptions

3,392

3,596

3,811

4,040

Telephone & Fax

31,927

33,843

35,873

38,026

Training

12,720

13,483

14,292

15,150

Uniforms

2,682

2,843

3,013

3,194

Total Expenses

863,199

914,991

969,891

1,028,084

Depreciation

195,000

240,000

250,000

215,000

Profit / (Loss) before Interest & Tax

461,592

440,789

627,855

789,436

Professional Fees
Rent
Repairs & Maintenance
Salaries & Wages

Interest

86,900

71,897

51,454

23,917

Taxation

104,914

103,290

161,392

214,345

Profit / (Loss) for the year

269,778

265,603

415,009

551,174

6.7%

6.3%

9.0%

10.8%

Profit / (Loss) %

Interest Cover

5.3

6.1

12.2

33.0

Return on Equity (ROE)

55.2%

35.2%

35.5%

32.0%

Return on Net Assets (RONA)

20.0%

18.2%

26.3%

30.5%

Page 13 of 19

Example Trading (Pty) Limited

Cash Flow Projections - Cash Flow Statement
www.excel-skills.com
Mar-2015

Apr-2015

May-2015

Jun-2015

Jul-2015

Aug-2015

Sep-2015

Oct-2015

Nov-2015

Dec-2015

Jan-2016

Feb-2016

Year-2016

Cash flows from operating activities

Profit / (Loss) for the year

25,439

38,946

26,545

(22,652)

16,337

16,123

29,230

(11,735)

3,547

30,452

36,317

28,590

217,140

Interest

8,250

8,141

8,030

7,919

8,558

8,435

8,311

8,187

8,061

7,935

7,808

7,679

97,315

Taxation

9,893

15,145

10,323

(8,809)

6,353

6,270

11,367

(4,564)

1,380

11,842

14,123

11,118

84,443

13,333

13,333

14,167

14,167

14,167

15,417

15,417

15,417

15,417

15,417

15,417

15,417

177,083

Inventory

(17,258)

(24,075)

13,591

(3,458)

16,240

(7,621)

(2,794)

12,956

(15,581)

339

1,016

(1,717)

(28,362)

Receivables

(40,323)

(49,677)

30,323

(11,323)

25,839

(14,516)

(5,323)

24,677

(29,677)

645

1,935

(3,270)

(70,690)

Payables

7,622

14,596

(5,959)

38,929

(39,582)

6,856

(7,125)

16,289

4,171

(17,884)

(4,848)

4,794

17,859

Cash generated from operations

6,956

16,408

97,020

47,912

30,964

49,083

61,227

(12,682)

48,746

71,769

62,612

494,789

(8,250)

(8,141)

14,773
On this
this sheet:
sheet:
(8,030)On
(7,919)

(8,558)

(8,435)

(8,311)

(8,187)

(8,061)

(7,935)

(7,808)

(7,679)

(97,315)

Adjustment for non-cash expenses:

Depreciation
Changes in operating assets & liabilities

Interest paid
Taxation paid
Net cash from operating activities
Cash flows from investing activities
Purchases of property, plant & equipment
Net cash used in investing activities

This
includes a detailed cash flow statement for
12 monthly &
periods.
This sheet
sheet
& 55 annual
annual
- includes a-detailed cash- flow statement
- for 12 monthly
(39,176)periods.
Only
Only the
the monthly
monthly capital
capital expenditure
expenditure amounts
amounts and
and shareholders'
shareholders' contribution
contribution
(1,294)for the first
8,267
88,990
6,854
39,355
(16,646)
40,772
amounts
year
need
to
be
entered
on
this
sheet.
All
the
other
amounts
are
amounts for the first year need to be entered on this sheet. All the other amounts are
automatically
automatically calculated.
calculated. Rows
Rows that
that require
require user
user input
input in
in the
the monthly
monthly columns
columns are
are
indicated
indicated with
with yellow
yellow highlighting
highlighting in
in column
column A.
A. The
The monthly
monthly reporting
reporting periods
periods are
are
determined
based
on
the
start
date
that
is
specified
in
cell
B5
on
the
"Assumptions"
determined
based on- the start(50,000)
date that is specified
in cell B5- on the "Assumptions"
(75,000)
sheet.
sheet.
-

(50,000)

Proceeds from shareholders' contributions

500

Proceeds from loans

53,040

(20,744)

40,811

63,961

(45,267)

(84,443)

9,665

313,031

(125,000)

(125,000)

500

100,000

(75,000)

Cash flows from financing activities

100,000

Repayment of loans

(14,584)

(14,694)

(14,804)

(14,915)

(16,352)

(16,475)

(16,599)

(16,723)

(16,849)

(16,975)

(17,102)

(17,231)

(193,302)

Net cash from financing activities

(14,584)

(14,694)

(14,804)

(14,415)

83,648

(16,475)

(16,599)

(16,723)

(16,849)

(16,975)

(17,102)

(17,231)

(92,802)

Increase / (Decrease) in cash equivalents

(15,878)

(6,426)

24,186

(7,561)

123,002

(108,122)

24,173

36,317

(37,592)

23,836

46,859

(7,565)

95,229

21,000

5,122

(1,304)

22,882

15,321

138,323

30,201

54,375

90,692

53,100

76,935

123,794

21,000

5,122

(1,304)

22,882

15,321

138,323

30,201

54,375

90,692

53,100

76,935

123,794

116,229

116,229

Cash & cash equivalents at beginning of year

Cash & cash equivalents at end of year

Page 14 of 19

Example Trading (Pty) Limited

Cash Flow Projections - Cash Flow Statement
www.excel-skills.com
Year-2017

Year-2018

Year-2019

Year-2020

Cash flows from operating activities

Profit / (Loss) for the year

269,778

265,603

415,009

Interest

86,900

71,897

51,454

551,174
23,917

Taxation

104,914

103,290

161,392

214,345

195,000

240,000

250,000

215,000

Adjustment for non-cash expenses:

Depreciation
Changes in operating assets & liabilities
Inventory

(1,478)

(8,492)

(11,505)

(18,984)

Receivables

(8,032)

(16,436)

(34,516)

(37,967)

9,518

7,224

9,159

13,782

656,600

663,085

840,993

961,267

Payables
Cash generated from operations
Interest paid

(86,900)

(71,897)

(51,454)

(23,917)

Taxation paid

(104,914)

(103,290)

(161,392)

(214,345)

464,787

487,898

628,147

723,004

Purchases of property, plant & equipment

(125,000)

(250,000)

(200,000)

(150,000)

Net cash used in investing activities

(125,000)

(250,000)

(200,000)

(150,000)

Net cash from operating activities

Cash flows from investing activities

Cash flows from financing activities

Proceeds from shareholders' contributions
Proceeds from loans

80,000

105,000

Repayment of loans

(226,967)

(260,652)

(293,550)

(321,087)

Net cash from financing activities

(146,967)

(155,652)

(293,550)

(321,087)

Increase / (Decrease) in cash equivalents

192,820

82,246

134,597

251,918

Cash & cash equivalents at beginning of year

116,229

309,049

391,295

525,892

Cash & cash equivalents at end of year

309,049

391,295

525,892

777,810

Page 15 of 19

Example Trading (Pty) Limited

Cash Flow Projections - Balance Sheet
www.excel-skills.com
Feb-2015

Mar-2015

Apr-2015

May-2015

Jun-2015

Jul-2015

Aug-2015

Sep-2015

Oct-2015

Nov-2015

Dec-2015

Jan-2016

Feb-2016

Assets
Property, Plant & Equipment

800,000

786,667

773,333

809,167

795,000

780,833

840,417

825,000

809,583

794,167

778,750

763,333

747,917

Inventory

140,000

157,258

181,333

167,742

171,200

154,960

162,581

165,375

152,419

168,000

167,661

166,645

168,362

Receivables

250,000

290,323

340,000

309,677

321,000

295,161

309,677

315,000

290,323

320,000

319,355

317,419

320,690

21,000

5,122

(1,304)

22,882

15,321

138,323

30,201

54,375

90,692

53,100

76,935

123,794

116,229

1,211,000

1,239,369

1,293,362

1,309,468

1,302,521

1,369,277

1,342,876

1,359,750

1,343,017

1,335,266

1,342,701

1,371,192

1,353,197

Current Assets

Cash
Equity & Liabilities
Shareholders' Contributions
Retained Earnings
Long Term Loans

1,000

1,000

1,000

1,000

1,500

1,500

1,500

1,500

1,500

1,500

1,500

1,500

1,500

25,439

64,384

90,929

68,277

84,615

100,738

129,968

118,233

121,780

152,232

188,549

217,140

1,100,000

1,085,416

1,070,722

1,055,918

1,041,004

1,124,651

1,108,176

1,091,577

1,074,854

1,058,005

1,041,031

1,023,928

1,006,698

110,000

117,622

132,218

126,259

165,188

125,606

132,462

125,338

141,627

145,798

127,913

123,065

127,859

9,893

25,038

35,361

26,552

32,906

11,367

6,804

8,183

20,026

34,149

1,211,000

1,239,369

1,293,362

1,309,468

1,302,521

1,369,277

1,342,876

1,359,750

1,343,017

1,335,266

1,342,701

1,371,192

1,353,197

28

31

30

31

30

31

31

30

31

30

31

31

29

3.8

3.9

3.6

3.5

3.8

3.9

4.7

2.6

2.7

2.6

2.4

2.7

2.8

3.4

25.0

25.0

25.0

25.0

25.0

25.0

25.0

Current Liabilities
Payables
Provision for Taxation

Days in period

On
On this
this sheet:
sheet:

Current Ratio
Quick Ratio
Inventory Days
Debtors Days

This
This sheet
sheet includes
includes
projected
balance sheet
sheet
for 12
12 monthly
monthly
and 55 3.7
3.6 aa projected
3.3balance
3.1 for
2.6 and
annual
All
on
are
annual periods.
periods.
All the
the balances
balances
on this
this sheet
sheet
are automatically
automatically
2.3
2.2
2.1
1.8
2.7
calculated
calculated based
based on
on the
the template
template assumptions
assumptions and
and the
the income
income
25.0
25.0 calculations.
25.0 This
statement
flow
requires
statement &
& cash
cash
flow statement
statement
calculations.
This sheet
sheet25.0
requires no
no 25.0
user
30.0
30.0
30.0
30.0
user input.
input. 30.0

30.0

30.0

30.0

30.0

30.0

30.0

30.0

Creditors Days

15.0

15.0

15.0

15.0

15.0

15.0

15.0

15.0

15.0

15.0

15.0

15.0

Debt / Equity

41.1

16.4

11.5

14.9

13.1

10.8

8.3

9.0

8.6

6.8

5.4

4.6

Page 16 of 19

Example Trading (Pty) Limited

Cash Flow Projections - Balance Sheet
www.excel-skills.com
Year-2016

Year-2017

Year-2018

Year-2019

Year-2020

Assets
Property, Plant & Equipment

747,917

677,917

687,917

637,917

572,917

Inventory

168,362

169,840

178,332

189,837

208,821

Receivables

320,690

328,722

345,158

379,674

417,641

Cash

116,229

309,049

391,295

525,892

777,810

1,353,197

1,485,527

1,602,701

1,733,319

1,977,188

Current Assets

Equity & Liabilities

Shareholders' Contributions
Retained Earnings
Long Term Loans

1,500

1,500

1,500

1,500

1,500

217,140

486,918

752,521

1,167,529

1,718,703

1,006,698

859,731

704,079

410,529

89,443

127,859

137,378

144,601

153,761

167,542

Current Liabilities
Payables
Provision for Taxation

1,353,197

1,485,527

1,602,701

1,733,319

1,977,188

Days in period

366

365

365

365

365

Current Ratio

4.7

5.9

6.3

7.1

8.4

Quick Ratio

3.4

4.6

5.1

5.9

7.1

Inventory Days

25.0

25.0

25.0

25.0

25.0

Debtors Days

30.0

30.0

30.0

30.0

30.0

Creditors Days

15.0

15.0

15.0

15.0

15.0

4.6

1.8

0.9

0.4

0.1

Debt / Equity

Page 17 of 19

Example Trading (Pty) Limited

Cash Flow Projections - Balance Sheet
www.excel-skills.com
www.excel-skills.com

Assets
Property, Plant & Equipment
Current Assets
Inventory
Receivables
Cash
Equity & Liabilities
Shareholders' Contributions
Retained Earnings
Long Term Loans
Current Liabilities
Payables
Provision for Taxation

Days in period
Current Ratio
Quick Ratio
Inventory Days
Debtors Days
Creditors Days
Debt / Equity

Page 18 of 19

Example Trading (Pty) Limited

Cash Flow Projections - Loan Repayment Schedule
Interest Rate

9.0%

Repayment Term

5.0

Interest Only

No

www.excel-skills.com
Month
Feb-2015

Opening
Balance

Additional
Financing
-

Loan
Repayment

1,100,000

Interest
Charged

Capital
Repayment
-

Closing
Balance

www.excel-skills.com

1,100,000

Mar-2015

1,100,000

22,834

8,250

14,584

1,085,416

Apr-2015

1,085,416

22,834

8,141

14,694

1,070,722

May-2015

1,070,722

22,834

8,030

Jun-2015

1,055,918

22,834

Jul-2015

1,041,004

Aug-2015

1,124,651

14,804

1,055,918

7,919

14,915

1,041,004

24,910

8,558

16,352

1,124,651

24,910

8,435

16,475

1,108,176

24,910

8,311

16,599

100,000

Sep-2015

1,108,176

Oct-2015

1,091,577

Nov-2015
Dec-2015
Jan-2016
Feb-2016

24,910
8,187
16,723
On
Onthis
this sheet:
sheet:
This
based
on
and
This amortization
amortization
table is
is calculated
calculated
based
on the
the start-up
start-up
loan balance
balance
and
1,074,854 table
24,910
8,061loan
16,849

loan
in the template assumptions
as well as the
loan terms
terms that
that are
are specified
specified
the
1,058,005
- in the template
24,910 assumptions
7,935 as well as
16,975
additional
additional loan
loan amounts
amounts that
that are
are entered
entered in
in column
column C.
C. The
The interest
interest and
and
1,041,031
24,910
7,808
17,102
capital
capital repayment
repayment amounts
amounts that
that are
are calculated
calculated are
are automatically
automatically included
included
1,023,928
24,910 and
7,679
17,231
on
monthly
flow
on the
the
monthly &
& annual
annual-income
income statement
statement
and cash
cash
flow statement.
statement.

1,091,577
1,074,854
1,058,005
1,041,031
1,023,928
1,006,698

Mar-2016

1,006,698

24,910

7,550

17,360

Apr-2016

989,338

24,910

7,420

17,490

May-2016

971,848

24,910

7,289

17,621

954,227

Jun-2016

954,227

26,571

7,757

18,814

1,015,413

Jul-2016

80,000

989,338
971,848

1,015,413

26,571

7,616

18,955

996,458

Aug-2016

996,458

26,571

7,473

19,097

977,360

Sep-2016

977,360

26,571

7,330

19,240

958,120

Oct-2016

958,120

26,571

7,186

19,385

938,735

Nov-2016

938,735

26,571

7,041

19,530

919,205

Dec-2016

919,205

26,571

6,894

19,677

899,528

Jan-2017

899,528

26,571

6,746

19,824

879,704

Feb-2017

879,704

26,571

6,598

19,973

859,731

Mar-2017

859,731

26,571

6,448

20,123

839,608

Apr-2017

839,608

26,571

6,297

20,274

819,335

May-2017

819,335

26,571

6,145

20,426

798,909

Jun-2017

798,909

26,571

5,992

20,579

778,330

Jul-2017

778,330

28,128

6,400

21,728

831,603

Aug-2017

831,603

28,128

6,237

21,891

809,712

Sep-2017

809,712

28,128

6,073

22,055

787,657

Oct-2017

787,657

28,128

5,907

22,220

765,437

Nov-2017

765,437

28,128

5,741

22,387

743,050

Dec-2017

743,050

28,128

5,573

22,555

720,496

Jan-2018

720,496

28,750

5,629

23,122

727,374

Feb-2018

727,374

28,750

5,455

23,295

704,079

Mar-2018

704,079

28,750

5,281

23,470

680,609

Apr-2018

680,609

28,750

5,105

23,646

656,964

75,000

30,000

May-2018

656,964

28,750

4,927

23,823

633,140

Jun-2018

633,140

28,750

4,749

24,002

609,139

Jul-2018

609,139

28,750

4,569

24,182

584,957

Aug-2018

584,957

28,750

4,387

24,363

560,594

Sep-2018

560,594

28,750

4,204

24,546

536,048

Oct-2018

536,048

28,750

4,020

24,730

511,318

Nov-2018

511,318

28,750

3,835

24,915

486,402

Dec-2018

486,402

28,750

3,648

25,102

461,300

Jan-2019

461,300

28,750

3,460

25,291

436,010

Feb-2019

436,010

28,750

3,270

25,480

410,529

Mar-2019

410,529

28,750

3,079

25,671

384,858

Apr-2019

384,858

28,750

2,886

25,864

358,994

May-2019

358,994

28,750

2,692

26,058

332,936

Jun-2019

332,936

28,750

2,497

26,253

306,683

Jul-2019

306,683

28,750

2,300

26,450

280,233

Aug-2019

280,233

28,750

2,102

26,649

253,584

Sep-2019

253,584

28,750

1,902

26,848

226,736

Oct-2019

226,736

28,750

1,701

27,050

199,686

Nov-2019

199,686

28,750

1,498

27,253

172,433

Dec-2019

172,433

28,750

1,293

27,457

144,976

Jan-2020

144,976

28,750

1,087

27,663

117,313

Feb-2020

117,313

28,750

880

27,870

89,443

Mar-2020

89,443

5,916

671

5,245

84,197

Apr-2020

84,197

5,916

631

5,285

78,913

May-2020

78,913

5,916

592

5,324

73,588

Jun-2020

73,588

5,916

552

5,364

68,224

Jul-2020

68,224

3,840

512

3,329

64,896

Aug-2020

64,896

3,840

487

3,354

61,542

Sep-2020

61,542

3,840

462

3,379

58,163

Oct-2020

58,163

3,840

436

3,404

54,759

Nov-2020

54,759

3,840

411

3,430

51,330

Dec-2020

51,330

3,840

385

3,455

47,874

Jan-2021

47,874

3,840

359

3,481

44,393

Feb-2021

44,393

3,840

333

3,507

40,886

Mar-2021

40,886

3,840

307

3,534

37,352

Apr-2021

37,352

3,840

280

3,560

33,792

May-2021

33,792

3,840

253

3,587

30,205

Jun-2021

30,205

2,180

227

1,953

28,252

Jul-2021

28,252

2,180

212

1,968

26,284

Aug-2021

26,284

2,180

197

1,982

24,302

Sep-2021

24,302

2,180

182

1,997

22,304

Oct-2021

22,304

2,180

167

2,012

20,292

Nov-2021

20,292

2,180

152

2,027

18,265

Dec-2021

18,265

2,180

137

2,043

16,222

Jan-2022

16,222

2,180

122

2,058

14,164

Feb-2022

14,164

2,180

106

2,073

12,091

Mar-2022

12,091

2,180

91

2,089

10,002

Apr-2022

10,002

2,180

75

2,105

7,897

May-2022

7,897

2,180

59

2,120

5,777

Jun-2022

5,777

2,180

43

2,136

3,640

Jul-2022

3,640

623

27

595

3,045

Aug-2022

3,045

623

23

600

2,445

Sep-2022

2,445

623

18

604

1,841

Oct-2022

1,841

623

14

609

1,232

Nov-2022

1,232

623

614

618

Dec-2022

618

623

618

Jan-2023

Feb-2023

Mar-2023

Apr-2023

May-2023

Jun-2023

Jul-2023

Aug-2023

Sep-2023

Oct-2023

Nov-2023

Dec-2023

Jan-2024

Feb-2024

Mar-2024

Apr-2024

May-2024

Jun-2024

Jul-2024

Aug-2024

Sep-2024

Oct-2024

Nov-2024

Dec-2024

Jan-2025

Feb-2025

Mar-2025

Apr-2025

May-2025

Jun-2025

Jul-2025

Aug-2025

Sep-2025

Oct-2025

Nov-2025

Dec-2025

Jan-2026

Feb-2026

Mar-2026

Apr-2026

May-2026

Jun-2026

Jul-2026

Aug-2026

Sep-2026

Oct-2026

Nov-2026

Dec-2026

Jan-2027

Feb-2027

Mar-2027

Apr-2027

May-2027

Jun-2027

Jul-2027

Aug-2027

Sep-2027

Oct-2027

Nov-2027

Dec-2027

Jan-2028

Feb-2028

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