Forecast bridge calculator
Alder Maintenance needs overtime to clear next month’s backlog. Booking it costs $4,000 today. Decide whether ending cash can stay at or above $5,000.
| Planned operating profit | $20,000 |
|---|---|
| 100 fewer jobs | -$4,000 |
| Higher charge per job | $9,000 |
| Higher cost per job | -$4,500 |
| Latest operating profit | $20,500 |
Start with $25,000 in cash and $99,000 in invoices. The company pays all $78,500 of operating costs this month.
How the cash model works
Multiply billed revenue by the share collected this month. Add those receipts to opening cash and subtract the costs paid this month. Test ending cash before and after overtime against the floor.