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Sample Cash Flow Statment For ABC Cleaners
Projected Cash Flow Statement
Projected Cash Flow Statement
ABC Cleaners
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Year 1 |
Year 2 |
Year 3 |
| Cash In |
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| Revenue |
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| 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 |
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| 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 |
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| Total cash in |
$792,795 |
$804,171 |
$876,432 |
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| Cash out |
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| Purchases |
$109,500 |
$0 |
$0 |
| Cost of sales |
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| Opening inventory |
$0 |
$0
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$0 |
| Inventory purchases |
$112,750 |
$0 |
$0 |
| Closing inventory |
$9,883 |
$9,883 |
$9,883 |
| Cost of sales |
$102,867 |
$120,626 |
$131,465 |
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| Gross margin |
$582,915 |
$683,545 |
$744,967 |
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| 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 |
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| Total cash out |
$755,460 |
$722,252 |
$798,843 |
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| Net cash flow |
$37,335 |
$81,919 |
$86,589 |
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| Bank balance open |
$0 |
$37, 335 |
$119,254 |
| Bank balance close |
$37,335 |
119,254 |
$205,843 |
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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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