Cash Forecasts
Roll cash forward week by week and find the tight spots before they arrive.
Pen and paper is fine · no calculator needed why?
Opens at level 28.
Lesson and untimed practice
Read the full lesson and try each skill without a clock. About 3 minutes to read.
skills · practice stats
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Ending cash not tried yet
worked example
Opening cash is $6,000, cash receipts are $15,500, and cash payments are $7,500. What is closing cash? (Use a minus sign if negative.)
Answer: $14,000.00
- Opening + receipts − payments = $6,000 + $15,500 − $7,500 = $14,000.
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Roll forward several weeks not tried yet
worked example
Opening cash is $35,500. Weekly receipts: $7,500, $7,500, $9,500, $0. Weekly payments: $6,000, $5,500, $4,500, $2,000. What is cash at the end of week 4? (Use a minus sign if negative.)
Answer: $42,000.00
- Each week's ending cash is the next week's opening: $37,000, $39,000, $44,000, then $42,000.
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The tightest week not tried yet
worked example
Opening cash is $2,500. Weekly receipts: $6,000, $500, $7,000, $7,500. Weekly payments: $500, $7,500, $500, $4,000. What is the lowest week-end cash balance? (Use a minus sign if negative.)
Answer: $1,000.00
- Week-end balances: $8,000, $1,000, $7,500, $11,000.
- The lowest is $1,000, at the end of week 2: the week to watch, even though cash is back up to $11,000 by the end.
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A customer pays late not tried yet
worked example
Week 2 is forecast to end with $42,500. A $4,500 customer payment slips from week 2 to week 3. What is the new week-2 ending cash? (Use a minus sign if negative.)
Answer: $38,000.00
- Move the receipt, don't delete it: week 2 drops by $4,500 to $38,000, and week 3's receipts rise by the same $4,500, so by the end of week 3 the cash is back where it was.
- No sale is lost or created; only the timing changes.
rest ladder
- 1 day
- 3 days
- 7 days
- 14 days
- 30 days
- 60 days
- mastered · every 90 days