The net cash flow
Receipts for sales occur in the same pattern as the first three months of the year. For example, February’s $150,000 in sales are collected in February and March. Payments for purchases also follow the same lagging relationships as earlier in the year. On April 1 the staff receive a 10% pay increase (no change in employees or hours). What is the net cash flow for the month of June?
The Excel spreadsheet is attached.