Prepare a six-month cash flow statement

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Dick's Draperies has gross sales of $15,000 per month, half of which are on credit (paid within 30 days). Monthly expenses are as follows: wages, $3,000; utilities and rent, $2,000; advertising, $300; and miscellaneous, $500. Inventory is purchased every three months and totals $30,000 for each order. Yearly expenses paid for in advance are insurance of $1,000 and a rent deposit of $700 (the rent deposit is held by the landlord till the lease is over).

Prepare a six-month cash flow statement for Dick's Draperies. Use the template below. What do you think he should do about the cash flow situation?

Reference no: EM133033015

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