Change collections. Watch cash move.
Debtor days drive receivables on the balance sheet, and cash moves the opposite way. The composition of assets changes; total assets stay constant in this isolated collections example. Liabilities and equity are held at the base total.
- Cash
- $6,400K
- Receivables
- $5,918K
- Other assets
- $21,000K
- Total assets
- $33,318K
- Liabilities + equity (fixed)
- $33,318K
- Assets − liabilities & equity
- $0
Base case: 45 debtor days.
Illustration with fictional data (annual revenue $48M). Calculations use unrounded dollar values; figures shown are rounded to the nearest $1K. Not a client result.
Three-statement & cash planning
The fictional scenario is a manufacturer with two plants and three sales channels. Finance maintains separate P&L, balance sheet and treasury files, making it difficult to understand the cash effect of a revised operating plan.
Make the logic explicit.
- Link revenue and cost assumptions to working-capital schedules using explicit timing drivers.
- Model capex, depreciation, borrowing, interest and repayments in supporting schedules.
- Derive the cash-flow statement from profit and balance-sheet movements, with non-cash and financing adjustments.
- Build a weekly receipts-and-payments view and reconcile its period boundaries to the monthly plan.
What planners would work with.
Working capital
Test debtor, creditor and inventory assumptions against the cash they consume or release.
Capex & assets
Plan investments and useful lives with a traceable fixed-asset roll-forward.
Debt & facilities
Map borrowings, interest and repayments; surface selected covenant calculations.
13-week cash
Inspect near-term receipts, payments and the lowest projected cash point.
Define what “correct” means.
- Check that assets equal liabilities plus equity in every period.
- Tie opening cash plus net cash movement to closing cash.
- Reconcile fixed assets and debt to their supporting schedules.
- Explain timing differences between weekly treasury and monthly FP&A views.
These are acceptance criteria for the proposed design, not reported results from an implemented client model.
Turn the blueprint into your plan.
A proposed deliverable set: integrated statement design, supporting schedules, scenario boards, a weekly cash view, and a control pack. Scope depends on the source data and accounting requirements.
Working through a similar problem?
Bring your current process, source systems and target planning cycle. We can use this blueprint as a starting point for a realistic scope.
Discuss your version