How to calculate net cash flows and cumulative cash balances.

My lesson is asking me to calculate the net cash flows and cumulative cash balances for the following cash budget. I'm doing the last part of a Math Models online high school course and no instructions were given on how to calculate this please help. Thank you. It gives me a schedule of sales receipts and cash disbursements for six months. It starts in January and end in June. For Sales Receipts (\$300, \$150, \$95, \$270, \$400, and \$345) and for cash disbursements (\$275, \$300, \$100, \$85, \$80, and \$100).

 pready Posts: 2,662, Reputation: 887 Ultra Member #2 Jan 9, 2012, 11:38 AM
Take your cash sales minus your cash disbursements for each month to get your net cash flow for each month. Then add month one and month 2 net cash flow to get your cmulative cash balance, then add month 3, month 4, month 5, and finally month 6 net cash flows to get your total cumulative cash balance.

For example: month one your cash sales are \$300 and your disbursements are \$275, so your net cash flow is \$25 (\$300 - 275). Your month 2 cash sales are \$150 and your cash disbursements are \$300, so your net cash flow for month 2 is -\$150. Now your cumulative net cash flow for month one and two is -\$125 (\$25 + -150). Now just solve for the remaining months to get your invidual months net cash flows, your cumulative cash balance, and your total cumulative cash balance.
 Yams1 Posts: 3, Reputation: 10 Junior Member #3 Jan 9, 2012, 11:52 AM
Awesome thank you! This problem was driving me crazy but the net cash flow for month one would be \$25 lol but thank you so much.
 FaithSieley Posts: 1, Reputation: 1 New Member #4 Apr 17, 2013, 05:32 AM
calculate the payback period for the set of data below
Time 0 1 2 3 4 5
Northwest -95 15 20 25 30 30
Midwest -75 15 20 20 25 30
SouthEast -60 10 15 20 20 25
WestCoast -35 5 10 10 15 15
SouthCoast -20 5 5 6 6 10

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