GENERALCHECKINGIn order to insure t

GENERAL
CHECKING

In order to insure that the figures are properly calculated and balanced, they must be checked. Several methods may be used, but the following four checks are suggested as a minimum:

CHECK #1: Item #1 [Beginning Cash on Hand – 1st Month] plus Item #3 [total Cash Receipts – Total Column] minus Item #6 [Total Cash Paid Out – Total Column] should be equal to Item # 7 [Cash Position at End of 12th Month]. In other words, Item #1 + Item #3 - Item #6 = Item #7.

CHECK #2: Item A [Sales Volume – Total Column] plus Item B [Accounts Receivable – Pre-start-up Position] minus Item 2(a) [Cash Sales – Total Column] minus Item 2(b) [Accounts Receivable Collection – Total Column] minus Item C [Bad Debt – Total Column] should be equal to Item B [Accounts Receivable at End of 12th Month]. In other words, Item A + Item B [pre-start-up] - Item 2(a) - Item 2(b) - Item 2(c) = Item B [at 12th month].

CHECK #3: The horizontal total of Item #6 [Total Cash Paid Out] is equal to the vertical total of all items under Item #5 [5(a) through 5(w)] in the total column at the right of the form.

CHECK #4: The horizontal total of Item #3 [Total Cash Receipts] is equal to the vertical total of all items under #2 [2(a) through 2(c)] in the total column at the right of the form.