Exercise – Cash Flow Statement

Cash Flow Statement

Fishbourne Marketing

Review the Cash Flow Statement (below) and answer the following questions:

  • 1) What is the name of the figure shown at the top of each month?
  • 2) Which line item amounts seem to fluctuate the most?
  • 3) Name some line items which may be influencing the amount shown in the other listed items?
January
February
March
April
May
June
Beginning Cash Balance

15,000



20,548



22,296



23,493



24,191



180,955


Cash inflows:
Accts. Rec. Collections
180,955
180,955
182,455
185,855
181,455
180,955
Loans on proceeds
Sales & receipts
5,000
0
3,500
0
4,500
6,000
Other:
Total Cash Inflows

185,955


180,955



185,955



185,955



185,955



186,955


Available Cash Balance
200,955


201,503


208,251


209,448

210,146


212,244


Cash Outflows (Expenses):
           
Advertising
300
300
300
400
400
400
Bank Service Charges
45
45
45
45
45
45
Credit Card Fees
35
35
35
35
35
35
Delivery
Health Insurance
478
478
478
478
478
478
Insurance
200
200
200
200
200
200
Interest
25
25
25
25
25
25
Inventory Purchases
1,000
1,000
450
750
450
1,000
Miscellaneous
300
300
300
300
300
300
Office
1,000
1,000
1,000
1,000
1,000
1,000
Payroll
83,300
83,300
83,300
83,300
83,300
83,300
Payroll Taxes
7,300
7,300
7,300
7,300
7,300
7,300
Professional Fees
250
250
250
250
250
250
Rent and Leases
1,000
1,000
1,000
1,000
1,000
1,000
Subscriptions and Dues
90
90
90
90
90
90
Supplies
200
200
100
200
100
200
Taxes and Licenses
44,629
43,429
44,629
44,629
44,629
44,829
Utilities and Telephone
130
130
130
130
130
130
Other
Subtotal

140,282



139,082



139,632



140,132


139,732



140,622


Other Cash Out Flows:
Capital Purchases
Loan Principal
125
125
125
125
125
125
Owner’s Draw
40,000
40,000
45,000
45,000
45,000
40,000
Other:
Subtotal

40,125



40,125


45,125



45,125



45,125



40,125


Total Cash Outflows
180,407

179,207

184,757

185,257

184,857

189,747

Ending Cash Balance
20,548


22,296


23,493


24,191


25,289


31,497