The first step in financial planning is the preparation of the cash flows. Below is the cash flow for year one for BIS Ltd., on a monthly basis.
We will consider the baseline case "scenario" according to the assumptions below.
The cash flow is prepared in the following order:
1. Cash Inflow
represented by the planned incoming capital and revenue during the first year:
- Monthly number of licenses to be sold, 9 licenses in total for the first year at a unit price of 30,000 each
- Income starting from the revenue on the sale of licenses, 14 licenses during the year at 30,000 each, 420,000 for the first year in total
- The first month there is a capital contribution by the Owners of 800,000
- Total inflow of cash in the first year, 1'270,000
2. Cash Outflow
represented by the
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