[Yams1]

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]

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]

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]

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