Set Up a Six-Month Cash Flow Projection Using Microsoft Excel for Elite Plc


SKU: Fin004290 Category:

Purchases are equal to cost of sales, set at 65% of sales


You have been asked to set up a six-month cash flow projection using Microsoft Excel for  Elite Plc. You have the following information.

(a) Sales were £45,000 per months in 2X18, falling to £42,000 in January 2X19. Thereafter they are expected to increase by 3% per month (i.e. February will be 3% higher than January, and so on).

(b) Debts are collected as follows.

i. 60% in month following sale.
ii. 30% in second month after sale.
iii. 7% in third month after sale.
iv. 3% remains uncollected.

(c) Purchases are equal to cost of sales, set at 65% of sales.

(d) Overheads were £6,000 per months in 2X18, rising by 5% in 2X19.

(e) Opening cash is an overdraft of £7,500.

(f) Dividends: £10,000 final dividend on 2X18 profits payable in May.

(g) Capital purchases: plant costing £18,000 will be ordered in January. 20% is payable with order, 70% on delivery in February and the final 10% in May.

The basic structure of the spreadsheet has been set up, and the relevant data are as bellowing.

Cash flow projection – six mon ths ending 30 June 2X19
Jan Feb Mar Apr May Jun
£ £ £ £ £ £

Cash receipts
1 month in arrears
2 month in arrears
3 month in arrears
Total operating receipts
Cash payments
Total operating payments
Capital purchases
Total other payments
Net cash flow
Cash balance b/f
Cash balance c/f

This table contains the key variables for the 2X19 cash flow projections
Sales growth percentage per month                                                                                                     3%
Purchases as % of sales                                                                                                                            65%

Debts paid within 1month                                                                                                                       60%

Debts paid within 2month                                                                                                                        30%

Debts paid within 3month                                                                                                                         7%

Bad debts                                                                                                                                                         3%

Increase in overheads                                                                                                                                  5%

Dividends (May)                                                                                                                                           10,000

Capital purchases                                                                                                                                       18,000

January                                                                                                                                                             20%
February                                                                                                                                                           70%
May                                                                                                                                                                    10%

This table contains relevant opening balance data as at Jan 2X19

Monthly sales 2X18                                                                                                                                       45,000
January 2X19                                                                                                                                                  42,000
Monthly overheads 2X18                                                                                                                                6,000
Opening cash                                                                                                                                                   (7,500)

Required-Group Assignment
Construct a spreadsheet to prepare the six-month cash flow projection for Elite Plc.

TASK 1 Hard copy print out of the cash flow projection for six months ending 30 June 2X19.

Good presentation can help people understand the contents of a spreadsheet. You are required to present the spreadsheet in professional format and appearance.

TASK 2 Hard copy print out of the above six months cash flow projection with formulae presented in the spreadsheet.

TASK 3 Display and analyze data held in the above six months cash flow projection in FIVE different charts or graphs.


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