Activity

USS Biz Trek Activity # 28: Estimating Cash Flow

When Kevin Hanks was 13, a neighbor gave him eight broken bicycles. By making smart financial decisions, Kevin has turned this opportunity into an average monthly income of over $1000. Read Kevin’s financial advice. When you are finished, use your back button to return to this activity.

Loggin’ On

It’s time to grab your USS Biz Trek log again and start a new section titled "Cash Flow Projections." Use the form below as an example to make monthly cash flow projection charts for the rest of the year, then calculate your cash flow for each month. As your business grows, make adjustments in cash flow projections as necessary.

Cash Flow Projections: (Month)

	Estimated Monthly Sales	Estimated Cost of Goods	Estimated Operating Expense	Total Estimated Expenses	Estimated Profit
Week 1
Week 2
Week 3
Week 4
Monthly Totals

To calculate cash flow, follow these steps:

Under the appropriate columns on the chart, fill in your estimated weekly sales, cost of goods, and operating expenses.
Add the weekly cost of goods and operating expenses together to find total weekly estimated expenses.
Remember the formula for figuring profit: Income — Expenses = Profit.
Working horizontally, subtract the total weekly expenses from your weekly estimated sales. The resulting figure is your projected weekly profit.
At the end of the month, add up all of the columns (vertically) to get your total cash flow for all four weeks.

Finished?

Rocket back to Lesson 8

Rocket forward to Activity 29