Construction for dummies in Russia: save money and mind

The data taken as an example assumes the presence of profitability in the range from 10 to 20% and a certain lag in the return on invested funds from the start of project expenditures. The first project can be the main activity. And all the rest are either the same, meaning just an additional amount of work, or fundamentally different, but generating income.

Table 1

Cash Flow Calculation Example

Rice. 1. Graphical display of cash flow to Table 1

Explanations

Cash flow is defined as the difference between receipts and expenditures over a period—in our case, a month.

Cash at the beginning – in our example, this is a conditional 1000 rubles. free cash that you have at the very beginning of the period under review. It can be equal to zero or negative – but it should reflect the real state of affairs at the moment.

Accordingly, the amount at the end of the period is the amount of money at its beginning plus cash flow.

The amount at the beginning of each period is the amount at the end of the previous period, so in the table the amount at the end changes on an accrual basis throughout the year, incorporating the cash flow values in each of the periods.