Cash Flow Application Guide

   Overview:

Using the annual corporate budget as a baseline, the Cash Flow application develops a forecast of what the resulting in-flow and out-flow of cash would be over the course of the year. As the year progresses, actual data is input and the resulting cash flow is compared to the forecast. 

The application is the For/act page of the Financial Management Application and consists of five tables or areas of tabular data and graphs as shown in the following figure.

 The primary area is a table with a horizontal axis of monthly forecast and actual data and a vertical axis of in-flow and out-flow data types.  This information covers the area of cells A1 to AX60.  A portion of the table is shown below.

Forecast data is to be entered in the blue cells as shown in the above figure.  Actual data is entered in the heavy outlined green cells.  All other cells have computed data.

A table of monthly actual detail expense data covers the area of cells BA3 to BN51.  A portion of this area is shown in the following figure.  Data is entered in the green cells only.

The third table contains the prior year's sales data and computation of the percent of sales that were cash transactions.  The table is shown below.  Data is entered in the yellow cells only.

The fourth table is the monthly budget detail expense data and covers the area of cells BA63 to BO120.  A portion of this table is shown below.  All data in this table is copied from the total budget data portion of the Financial management Application.

 The fifth table calculates the forecasted in-flow of cash resulting from customer purchases made through use of the Solano’s customer accounts. The table covers the area of cells AS121 to BR180. Prior year charged sales data for August thru December is entered in the left hand portion of the table and current year budgeted charged sales data is entered in the right hand portion of the table

The sixth table provides inventory actual and forecast data.  A portion of the table is shown below.

The top portion of the table records the prior year inventory performance.  Data is to be entered in the yellow cells only. The next lower portion is used for entering the forecast inventory data for the current year.  Data is to be entered in the blue cells only.  The two lower portions of the table are to be used for recording current year inventory actual performance.  Data is to be entered in the green cells only.

The following tabulation shows where monthly actual data is to be entered and where the data source is located.  The month of January is used as an example.

Cash Flow Monthly Actuals Data Entry

January Example

Data Description                            Cell Location                                    Data Source

Sales                                                   F6                               GL consolidated statement of income

Cash Sales %                                    E7                               Business Advisor Cash sales/tot sales

Bank Deposits                                   F12                             Bank deposit worksheet (Accounting)

Interest Income                                   F15                             GL consolidated statement of income

DIB & other income                           F16                             GL consolidated statement of income

Other Expenses                               F34 to F39                   Notes payable work sheet (Accounting)

            Life Ins                                     F40                             Accounting memo

            Other exp                             F41 to F43                     Notes payable work sheet (Accounting)

            Income tax                                F44                             Accounting memo

            Sales Tax                                  F46                            Accounting memo

Accounts receivable                            D58                            GL consolidated balance sheet pg1

Line of credit balance                          F60                            GL consolidated balance sheet pg2

Inventory accrued                                 BS28                         GL consolidated balance sheet pg1

Inventory paid                                       BS29                         GL consolidated balance sheet pg1

Cost of Sales                                        BS39                         GL consolidated statement of income

Expense accounts                           BB5 to BB51                 GL consolidated income, expense detail                       

Graphs Monthly Actuals Data Entry

January Example

Margin (gross profit)                            AG19                         GL consolidated statement of income