7.5 Projected Cash Flow

Cash flow projections are critical to our success. The monthly cash flow is shown in the illustration, with one bar representing the cash flow per month, and the other the monthly balance. The first few months are critical. It may be necessary to inject additional capital in this time-frame if the need arises. The annual cash flow figures are included here and the more important detailed monthly numbers are included in the appendices.

Cash

Pro Forma Cash Flow	FY 2000	FY 2001	FY 2002
Cash Received Cash from Operations:
Cash Sales	$0	$0	$0
Cash from Receivables	$102,661	$128,079	$136,928
Subtotal Cash from Operations	$102,661	$128,079	$136,928
Additional Cash Received
Sales Tax, VAT, HST/GST Received	$0	$0	$0
New Current Borrowing	$0	$0	$0
New Other Liabilities (interest-free)	$0	$0	$0
New Long-term Liabilities	$3,300	$3,300	$3,400
Sales of Other Current Assets	$0	$0	$0
Sales of Long-term Assets	$0	$0	$0
New Investment Received	$0	$0	$0
Subtotal Cash Received	$105,961	$131,379	$140,328

Expenditures	FY 2000	FY 2001	FY 2002
Expenditures from Operations:
Cash Spending	$5,673	$5,516	$5,112
Payment of Accounts Payable	$61,581	$66,393	$66,661
Subtotal Spent on Operations	$67,254	$71,908	$71,773
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out	$0	$0	$0
Principal Repayment of Current Borrowing	$0	$0	$0
Other Liabilities Principal Repayment	$0	$0	$0
Long-term Liabilities Principal Repayment	$0	$0	$0
Purchase Other Current Assets	$0	$0	$0
Purchase Long-term Assets	$0	$0	$0
Dividends	$0	$0	$0
Subtotal Cash Spent	$67,254	$71,908	$71,773
Net Cash Flow	$38,707	$59,471	$68,555
Cash Balance	$45,707	$105,178	$173,733

7.6 Projected Balance Sheet

The balance sheet in the following table shows managed but sufficient growth of net worth and a sufficiently healthy financial position. The monthly estimates are included in the appendices.

Pro Forma Balance Sheet

Assets

Current Assets FY 2000 FY 2001 FY 2002

Cash $45,707 $105,178 $173,733

Accounts Receivable $15,019 $16,540 $17,612

Other Current Assets $0 $0 $0

Total Current Assets $60,726 $121,718 $191,345

Long-term Assets

Long-term Assets $0 $0 $0

Accumulated Depreciation $1,800 $3,600 $5,400

Total Long-term Assets ($1,800) ($3,600) ($5,400)

Total Assets $58,926 $118,118 $185,945

Liabilities and Capital

Current Liabilities FY 2000 FY 2001 FY 2002

Accounts Payable $3,677 $3,575 $3,314

Current Borrowing $0 $0 $0

Other Current Liabilities $0 $0 $0

Subtotal Current Liabilities $3,677 $3,575 $3,314

Long-term Liabilities $3,300 $6,600 $10,000

Total Liabilities $6,977 $10,175 $13,314

Paid-in Capital $20,000 $20,000 $20,000

Retained Earnings ($13,000) $31,949 $87,942

Earnings $44,949 $55,994 $64,689

Total Capital $51,949 $107,942 $172,631

Total Liabilities and Capital $58,926 $118,118 $185,945

Net Worth $51,949 $107,942 $172,631