Accounts Cash Flow Projection Form

In Q4 2050, [Your Company Name] anticipates a healthy cash flow position driven by strong sales performance, careful cost management, and strategic financial decisions. Key assumptions include continued market stability, timely collections, and successful execution of planned investments.

I. Cash Inflows

A. Operating Activities

1. Sales Revenue:

Month	Product A Sales	Product B Sales	Total Sales
October	$500,000	$300,000	$800,000
November	$550,000	$320,000	$870,000
December	$600,000	$350,000	$950,000

2. Collections from Accounts Receivable:

Month	Accounts Receivable Collections
October	$400,000
November	$450,000
December	$500,000

3. Other Operating Income:

Month	Other Income
October	$20,000
November	$25,000
December	$18,000

B. Investing Activities

1. Proceeds from Asset Sales:

Month	Asset Sales Proceeds
October	$50,000
November	$30,000
December	$40,000

2. Investment Income:

Month	Investment Income
October	$8,000
November	$10,000
December	$7,000

C. Financing Activities

1. Loans and Borrowings:

Month	New Loans	Loan Repayments
October	$100,000	$50,000
November	$80,000	$45,000
December	$120,000	$60,000

2. Equity Financing:

Month	Equity Investment
October	$50,000
November	$40,000
December	$60,000

II. Cash Outflows

A. Operating Expenses

1. Cost of Goods Sold (COGS):

Month	COGS Product A	COGS Product B	Total COGS
October	$250,000	$150,000	$400,000
November	$275,000	$160,000	$435,000
December	$300,000	$175,000	$475,000

2. Operating Expenses:

Month	Rent	Utilities	Salaries	Other Expenses	Total Operating Expenses
October	$10,000	$5,000	$80,000	$20,000	$115,000
November	$10,000	$5,000	$85,000	$22,000	$122,000
December	$10,000	$5,000	$90,000	$25,000	$130,000

3. Taxes:

Month	Corporate Taxes
October	$15,000
November	$18,000
December	$20,000

B. Investing Activities

1. Capital Expenditures:

Month	Capital Expenditures
October	$60,000
November	$45,000
December	$70,000

2. Acquisitions:

Month	Acquisition Expenses
October	$30,000
November	-
December	$40,000

III. Opening and Closing Cash Balances

Month	Opening Cash Balance	Closing Cash Balance
October	$200,000	$320,000
November	$320,000	$450,000
December	$450,000	$540,000

IV. Assumptions and Sensitivity Analysis

A. Key Assumptions:

Market Stability:

Assumption: The conditions within the market are holding steady and remain stable, uninterrupted by any significant economic downturns or other potential disruptions that could negatively affect it.

Timely Collections:

Assumption: Customers consistently adhere to and comply with the stipulated payment terms and as a result, collections are carried out in an efficient and timely manner.

Successful Execution of Planned Investments:

Assumption: The execution of investments in capital expenditures and acquisitions happens as per the planned strategies, which contributes significantly to the expansion and growth of the business.

B. Sensitivity Analysis:

Conducted sensitivity analysis on key variables:

• Variations in sales volume

• Changes in operating expenses

• Delayed collections from accounts receivable

V. Variance Analysis

Month	Actual Net Cash Flow	Projected Net Cash Flow	Variance
October	$125,000	$120,000	+$5,000
November	$128,000	$130,000	-$2,000
December	$92,000	$90,000	+$2,000

Variance Analysis Summary:

• October: The variance is positive due to the fact that the sales were higher than initially expected.

• November: The slight variation in the negative direction can be attributed to the increase in operating expenses.

• December: The taxes and expenses have resulted in positive variance as they have been lower than what was initially projected.

Accounting Templates @ Templates.net