Cash Flow Learning Trail
C: Net Cash Flow
Follow the links for explanations of the terms used in the cash flow forecast.
| Jan | Feb | Mar | |
|---|---|---|---|
| Revenue | |||
| Cash Sales | 600 | 1200 | 1750 |
| Debtors Payments | 0 | 600 | 850 |
| Total Revenue | 600 | 1800 | 2600 |
| Expenses | |||
| Raw Materials | 970 | 1200 | 1350 |
| Wages | 800 | 800 | 800 |
| 220 | 220 | 220 | |
| Rates | 40 | 40 | 40 |
| Electricity | 60 | 60 | 60 |
| Travelling | 80 | 80 | 150 |
| Sundries | 130 | 80 | 80 |
| Exhibition Charges | 150 | 150 | 250 |
| Total | 2450 | 2630 | 2950 |
| Net Cash Flow | -1850 | -830 | -350 |
| Opening Balance | 750 | -1100 | -1930 |
| + / - Net Cash Flow | -1850 | -830 | -350 |
| Closing Balance | -1100 | -1930 | -2280 |
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Total Revenue. Remember this is the total of cash flowing into the business.
Total Expenses. Remember this is the total spending by the company, i.e. the total flow of cash out of the GoodWood Trading. Note. If goods are bought on credit, then they only appear on the cash flow statement when the payment is made.
Net Cash Flow. This calculated by taking total expenses away from total revenue. If revenue is greater than expenses then this figure is positive (+), if expenses are greater than revenue, then the Net Cash Flow is a negative (-).