Cash flow analysis and operating capital requirements for a startup business

¶ … money needed for this business including daily expenses and cost.

The sub-total for operation is $281,557.

The monthly break-even cost to sustain my business is $27, 657.

$281, 557 is spent on operations which includes:

Payroll, $177,600

Utilities, $6,000

Insurance, $6,000

Depreciation, $7,140

Rent, $24,000

Payroll taxes. $26,640

The remainder would be other expenses.

It is approximated that cash spending would total $177,600, whilst bill payment would be $103, 957.

The subtotal for all were I to include the following would be $322,957:

Long-term liabilities principal repayment $21, 600

Purchase other current assets = $19,800

Money flows in and out by my paying for a certain expense i.e. my cash flows out to another, but when I receive cash for a purchase that a consumer actualized cash flows into my business.

An example here would be rent where money to the total of 24,00 goes out to landlord. Money coming in for sales during Year 1 totaled $395,650.

One needs to keep the following questions in mind in order to understand cash flow-in and out of an organization:

1. How much cash does my business have?

2. How much cash does my business need to operate?

3. Where does my business receive its cash? Where does it spend its cash?

4. How do my income and expenses affect the amount of cash I need to expand my business?