Business Budgets and Cashflow

							FlexAcct

Category:       Banking
Family:         Residual Cash
Arguments:      Time, Base, BFBalance, CashFlow, InterestAER, PmtsPerYear, [AcctOutput]
Meaning:        Calculates the interest, principal etc for both an overdraft and a cash surplus, where the interest on cash is the
Description:    There are four functions whose job is similar: Overdraft, CashAcct, FlexAcct, and CurrentAcct. They form a gro
                is highly useful for business plans and budgets where you want a line near the bottom of the cashflow to deal w
                interest on debt and case - a kind of 'sweep-up' line that makes sure that cash shortfalls and surpluses get cha
                accordingly. Unlike CashAcct and OverDraft, FlexAcct allows the balance to either +ve or -ve, and keeps a per
                track of the balance. The main limitation is that the same interest rate is used for both +ve and -ve balances -
                different interest rates for cash and overdraft, see CurrentAcct. FlexAcct can calculate net interest paid and re
                principal and balances.




                Base            12 months          Try Changing Base to see the total interest for 2004/5
                PmtsPerYear        -4
                InterestAER       10%


                                   Loan              1 Jan 04     1 Jan 05     1 Jan 06    1 Jan 07     1 Jan 08
                                  Output

CashFlow Before FlexAcct                               (150)         100          100         100         (75)

CashFlow From FlexAcct               2                  150         (100)       (100)        (100)          75

CashFlow After FlexAcct                                  0            0            0           0            0



Principal                                               156          (88)        (97)        (107)         64
Interest                             1                  (6)          (12)         (3)           7          11
Principal+Interest                   2                  150         (100)       (100)        (100)         75
Balance (start period)               3                                156          67         (30)       (136)
Balance (average in period)          4                   55           119          31         (66)       (109)
Balance (end period)                 5                  156            67        (30)        (136)        (72)
e the interest on cash is the same as the interest in debt
urrentAcct. They form a group which
om of the cashflow to deal with
rtfalls and surpluses get charged
+ve or -ve, and keeps a permanent
both +ve and -ve balances - for
 ate net interest paid and received,




                                           From      AnnRate
                                         1 Jan 04     (150)
                  (17)                   1 Jan 05       100
                                         1 Jan 08      (75)




                1 Jan 09     1 Jan 10    1 Jan 11


                  (75)         (75)        (75)       (150)

                    75          75          75         150

                    0           0            0



                    71          78          85          161
                    4          (3)         (10)        (11)
                    75          75          75          150
                  (72)         (1)          76
                  (44)          26          104
                   (1)          76          161