Cash Flow

Goto the Prototype Stage in the DecisionCrafter NPD.xls menu. Click on Cash flow and financing sources. This will take you to the Prototype Stage menu. Click on CASH FLOW in the Prototype stage menu to review the financial implications of your pre-production plan. A sample Cash Flow Schedule is reproduced below. Notice that with the exception of the Opening Cash Balance no data input is required.

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Financing issues in the pre-production stage

Cash flow

Review your own projected Cash Flow Schedule. Does it have a positive Cash Balance? If not you will have to develop a financing strategy to provide the cash required to fund the shortfall. If you have trouble completing the cash flow, the questions set out below will help you to understand the elements of the cash flow form.

Sources of cash

Cash from operations

  1. What is the expected cash flow from sales of product/services for each year?
  2. What other cash income do you expect to earn (Interest on investments, etc.)?

Other sources of cash

  1. How much long term debt will you be able to obtain from the bank?
  2. How much do you intend to invest into the business in the form of equity?
  3. How much money do you expect to receive from the sale of capital equipment?

Uses of cash

Cash used in operations

  1. What are your expected variable operating expenses?
  2. What are your expected fixed operating expenses?
  3. How much bank interest will you pay on your operating loans?
  4. How much bank interest will you pay on your long term mortgages?
  5. What are your estimated income taxes for the year?

Other uses of cash

  1. What are this years principal payments on your mortgage debt?
  2. How much money will you spend on capital expenditures?
  3. How much money will be paid in dividends?
  4. Is there a cash flow surplus or deficit for the year?
  5. How much cash do you have at the beginning of the year?
  6. Will there be a cash surplus or deficit at the end of the year?
  7. If there is a cash deficit, how do you intend to make up the cash short fall?