Examples of Cash Position Reports

It is most illustrative to demonstrate the mechanics and the logic of cash position development by studying examples. Hopefully, the two presented following will provide you with some ideas about the basic principles you may employ yourself. I want to reiterate that the reports presented in Figures 18-1 and 18-2 are summary cash position reports used for daily treasury decision-making. These are final outcomes with data linked in from various schedules. More details on this process are provided for each illustration.

Illustration 1

Figure 18-1. Cash position report, illustration 1 (courtesy of E&D CC)

This is a company severely strapped for cash. It operates exclusively on its own cash flow with no borrowing resources. Moreover, the business's receivables are rigid—they are either generated on the spot through telephone sales or paid on scheduled days by contingency clients outsourcing the entity's services. This precludes any possibility for macromanaging of liquidity. It is what it is. These are difficult conditions experienced, in one way or another, by many companies today.