Here is 2015 actual expenses:3/31/2015 4/30/2015 5/31/2015 6/30/2015 7/31/2015 8/31/2015 9/30/2015 10/31/2015 11/30/2015 12/31/2015 COGS 100,624.55 74,381.11 100,898.54 52,093.77 99,736.82 101,719.18 123,006.71 84,344.83 179,640.33 323,131.50 Bad Debt Expense 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 G&A 30,554.64 10,711.01 50,175.93 22,658.66 12,467.10 52,031.51 84,004.58 43,432.76 31,856.13 176,191.24 Taxes and Fees 0.00 45,000.00 0.00 0.00 45,000.00 0.00 0.00 45,000.00 0.00 0.00 Professional Costs 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 Expenses 181,179.19 180,092.12 201,074.47 124,752.43 207,203.92 203,750.69 257,011.29 222,777.59 261,496.46 549,322.74 Forecasting assumptions for 2016:
• Revenue Cash Receipts will raise monthly over the next year. Monthly growth of rate of 0.25%
o Note:
• Taxes and Fees will be the same and in the same months as 2015
• G&A will be 20% of Revenue
• COGS will be 50% of Revenue
• Professional Costs will be the same until August 2016 when it will go up to 75,000 a month for the
rest of the year (Including August)
• Bad Debt Expense will be 1% of Cash Receipts. Answer the following questions: 1. If all assumptions are used, what would be the total Net Operating Cash Flow for 2016, round to nearest 2 decimals? 2. Do not assume facts from other questions. If all assumptions are used, except revenue increased only by 0.15% a month and COGS was 60% and Bad Debt was 1.8%, which month in 2016 would have positive cumulative Cash Flow? 3. Do not assume facts from other questions. If all assumptions are used , except revenue increased only by 0.15% a month and COGS was 60% and Bad Debt was 1.8%, which month in 2016 would have positive cumulative Cash Flow?