What is included in the December 31 cash position?

| Print |

The Finance area’s December 31 Cash Position includes all of your projected cash inflows and outflows this year. This includes (as an outflow) current debt that’s due this year.

The December 31 Cash Position also displays as the proforma balance sheet’s Cash Position. Cash reflects the amount left after all company payments are subtracted from the sum of:

Forecasts are used by the proformas to calculate financial projections (see Proformas & Annual Reports in the Guide section). If you enter a forecast that is unrealistically high, the proformas will take that forecast and project unrealistic revenue (see 10 Forecasting in the Guide section).


Sales Revenue on the Proforma Income Statement

On the proforma income statement, sales revenue for each product is based on its price multiplied by the lesser of either:

When a forecast is less than the total number of units available for sale, the proforma income statement will display an inventory carrying cost. When a forecast is equal to or greater than the number of units available, which predicts every unit will be sold, the carrying cost will be zero.

The simulation charges a 12% inventory carrying cost.