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Gap in cash flow

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					Cash Gap Days Worksheet                   Place Mouse here
                                          for instructions                                                                 Annual          Daily
Annual Sales                                                                                                         $      25,000,000   $ 68,493

Gross Margin                                                                                                                      11%

Cost of goods(Material, labor, subcontractors)                                                                       $      22,250,000   $   60,959




                                                 Month        Gap        Month        Gap        Month        Gap        Three Month
Month Ending Balance                              One         Days        Two         Days       Three        Days         Average

Inventory                                 $       500,000        8   $    650,000       11   $     850,000      14   $        666,667           11

Cost in Excess                            $      1,000,000      16   $ 1,200,000        20   $   1,750,000      29   $       1,316,667          22

Accounts Receivable                       $      3,500,000      51   $ 3,750,000        55   $   3,900,000      57   $       3,716,667          54

Billings in excess                        $      1,000,000     (15) $     500,000       (7) $      250,000      (4) $         583,333            (9)

Accounts Payable                          $      2,300,000     (38) $ 2,100,000        (34) $    1,900,000     (31) $        2,100,000          (34)

CASH GAP DAYS                                                   23                      43                      65                              44

Average Cost per day                                                                                                 $         60,959
Cash Gap Days                                            23                      43                      65                      43.83

Amount of Money                           $      1,425,000           $ 2,642,500             $   3,948,500           $       2,672,000
that needs to be borrowed


Borrowing rate                                       8.5%                   8.5%                     8.5%                        8.5%

Borrowing Cost per day                     $         332             $      615              $       920             $           622


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Month Ending Balance         Average
                           Thousands
Inventory                  $      667      +     11   11

Cost in Excess             $       1,317   +     22   22

Accounts Receivable        $       3,717   +     54   54

Billings in excess         $        583    -      9    9

Accounts Payable           $       2,100   -     34   34

CASH GAP DAYS                                    44   44




www.cfo-togo.com
call for password if you need it
There are some rounding issue involved with this spreadsheet
none are material, it has to do with the way the days round.




Average Cost per day                 $    60,959
Cash Gap Days                                  44



Amount of Money                      $ 2,672,000
that needs to be borrowed

Borrowing rate                               8.5%
Revised Borrowing cost per day       $        622
Actual Borrowing cost per day        $        622
Annualized Savings                   $        -

				
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