Cash Flow Forecasting

Cash Flow ForecastingProject description
Unit 4 Assignment 3 Cash Flow Forecasting
P4: prepare a 12-month cash flow forecast to enable an organisation to manage its cash

Spectacular Events is considering expanding operations to include the supply of temporary bars and dance floors to venues. They propose to take over a business called Posh Bars and have provided you with relevant information to forecast cash flow.

Task 1

Using the forecasted figures supplied, produce a twelve month cash flow forecast for Posh Bars. Use an Excel spread sheet suitable for presenting to the Bank to support finance.

Opening Balance125.00
Bar Sales
All bar sales are for cash and detailed examination of last years sales receipts enables you to make the following estimation of sales for the forthcoming year: Jan 500, Feb 700, Mar 600, Apr 650, May 650, June 650 Jul 900, Aug 900, Sep 700, Oct 650, Nov 950, Dec 4,000
Bar hire and
One off eventsEstimated income from Bar Hire- average of 3,000 a month with extra bookings of 5,000 in February, 7,500 in July, 5000 in August, 6500 in October and 12,000 in December
Purchase of
Stock Jan 800, Feb 540, Mar 240, Apr 280, May 280, Jun 580, July 500, Aug 400, Sept 300, Oct 450, Nov 700, Dec 750 paid for in month of purchase
InsuranceThe cost of the annual premium will be 2450. This will commence on the first of January and be payable in 10 equal monthly instalments from January through to October.
ComputerShe would like to buy a new laptop computer and has spotted a good deal at PC World, for 1,399 to include a printer. She intends to buy this in January.
of officesThe existing office is looking a little tired and she plans to have it re-decorated. The cost of this will be 1,300 and the work will be completed and paid for in January.
Web site costs90 per month

CostsThese are estimated to cost 90 per quarter, due in March, June etc.
Staff CostsThese are approximately 2,500 a month plus 1,000 in the months with extra events- 2,000 extra in December.
Electricity 50 per month direct debit

Rent400 per month
ExpensesSundry expenses such as stationery, postage, etc. 120 per month.
100 per month but 500 extra in August and December
Storage and Maintenance of equipment50 per month
These are 1,500 per month taken from the business for living expenses
Cash Flow Forecast

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