Monday, February 21, 2011

Step 6 Cash Flow Projection

  1. Cash inflows
    • cash sales
    • credit sales
  2. Cash outflows
    • fixed outflows
    • variable outflows
  3. Total Loan required for the company
  4. Loan repayment -  PMT
    • interest charged - monthly or yearly rest
  5. Cash Balance
If liquidity is affected, revise variables at cost volume profit analysis . Cash flows should preferably be prepared through spreadsheet.

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