Cash Flow Forecasting is a useful tool for a business to predict inflows and outflows of money in a business.

Complete a cash flow forecast for the following organisation.

BeeBusinessBee expects to have sales revenue from book sales of £100 in January and these should increase by 20% month on month, throughout the year. It will also sign a deal with a advertising agency in July for £300 per month for the next year. This will be paid on a quarterly basis with the first payment in August. BeeBusinessBee also expects to raise £1000 in December from the sale of shares as it becomes a Private Limited Company.

BeeBusinessBee will have to pay a salary of £1000 per month and will also have to pay the website hosting company £40 every two months, starting in January. The utilities costs will be £400 which have to be paid quarterly, starting in Feb. The Internet and mobile phone costs will be £50 per month. Sundries will be £100 per month.

You should now complete the cash flow forecast for BeeBusinessBee.


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