Sample Cash Flow Statment For ABC Cleaners

Projected Cash Flow Statement

Projected Cash Flow Statement
ABC Cleaners

 
Year 1
Year 2
Year 3
Cash In      
Revenue      
Residential sales $508,806 $596,643 $650,256
Up sales residential $176,976 $207,528 $226,176
Commercial sales $0 $0 $0
Vehicle cleaning $0 $0 $0
Miscellaneous $0 $0 $0
Total sales $685,782 $804,171 $876,432
       
Cash from sales $480,047 $562,920 $613,502
Accounts receivable $205,753 $22,487 $22,487
Collections of receivables $183,247 $241,251 $262,930

SPA & loan & equity

$129,500 $0 $0
       
Total cash in $792,795 $804,171 $876,432
       
Cash out      
       
Purchases $109,500 $0 $0
Cost of sales      
Opening inventory $0 $0
$0
Inventory purchases $112,750 $0 $0
Closing inventory $9,883 $9,883 $9,883
Cost of sales $102,867 $120,626 $131,465
       
Gross margin $582,915 $683,545 $744,967
       
Owners wages $20,000 $32,500 $37,500
Sales staff $74,994 $80,475 $83,600
Crew cost $281,422 $322,890 $352,013
Rent $9,000 $9,450 $9,923
Utilities $6,000 $6,300 $6,489
Office manager $30,000 $31,500 $33,075
Advertising & promotion $15,000 $7,500 $7,500
Trucks (gas, repairs, etc.) $45,750 $57,188 $71,484
Office supplies $900 $1,000 $1,200
Insurance $7,500 $8,000 $8,500
Telephone $26,000 $27,300 $28,665
Accounting $2,550 $2,805 $3,086
Office security $600 $650 $700
Bank charges $300 $325 $350
Other $600 $650 $700
Miscellaneous $1,500 $2,000 $2,500
Interest payment $3,455 $2,800 $2,090
Prinicple payment $7,639 $8,293 $9,004
       
Total cash out $755,460 $722,252 $798,843
       
Net cash flow $37,335 $81,919 $86,589
       
Bank balance open $0 $37, 335 $119,254
Bank balance close $37,335 119,254 $205,843
       

This may seem confusing at first so let's break this down. First, you have to think in terms of cash. That is, when the money lands into your bank account. Remember, accounts receivables are your sales terms (ie: net 30 days, 60 days, 90 days). This is when you estimate when you are going to actually get paid. If you make a sale in January for $100 and your sales terms are net 30 days (credit terms), you will have an estimated cash sale for February in the amount of $100. This is the collection of accounts receivable.

Cash In

The revenue section is to show total revenue. The section just below it, shows how we get our cash position. This is simply shown as:

Cash from sales (Sales made on the spot) + Accounts Receivables (Your net sales terms or sales on credit) + Collection of Receivables (Collection of cash from sale made on credit) = Total Cash Sales

The exception is the first year. We include all incoming cash and in our first year, we have a cash influx from other sources such as a funding contribution from SPA, a commercial loan from the Bank and our equity contribution. We must include these to show our cash position. This is only for the first year, unless you get other cash grants, loans, or contributions for the following years. Remember, any incoming cash items gets included here.

Cash out

This includes all outgoing cash items such as purchases, inventory, and other cash costs.

Cost of sales information is included in the income statement, under "cost of sales". You can include those items here if you choose. For simplicity, I kept them off. All expenses which have been incurred as spent items are included here. Most expensed items will be paid the month they have been incurred, for example, telephone bills.

You will also include interest and principal loan payments here. Since you will be paying off your loans on a monthly basis, they have to be included here.

Remember, all outgoing cash items are included here.

Net cash flow is what you have in your bank account once all your bills have been paid.

Bank balance open and bank balance close

This may seem a little confusing but all you have to remember is that this is the cash you start with at the beginning of the year. At year 1, there is no cash. In year 2, we ended with a cash position of $37,335. Add year one ending cash to the next years ending cash to get our cummulative cash flow. Given as:

Ending cash balance + opening bank balance = Ending bank balance.

It simply tells you what you have in your bank account after each, cumulative year. Go over the sample cash flow statement and study it until it all makes sense. You will use the information in this statement for your projected balance sheet.

Go over this statement with the 12 month cash flow statement for the first year. Find it here.

This will give you an idea of how your cash flow forecast should flow and balance.

Continue to yearly sample balance sheet

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