Projecting Your Cash Flow

Business Results

Sales
$ 190,237
Profit
$ 13,316
Starting Cash
$ 10,000

Cash Flow Summary

Cash Received
165,259
Cash Paid
164,328
Ending Cash
10,931

Even if a business is profitable, it might fail because it isn't generating enough cash flow. Money that is tied up in inventory and receivables isn't available to help the business pay its bills. You can vary inventory levels, payment terms, etc. to find the formula that is right for your business to make sure you are generating a positive cash flow.