For Each Scenario, find the Total Cash In flow(TCI) from revenue & Total Cash Out Flow(TCO) from expenses.
Take note of below points which calculating the Cash flows
1. Each scenario, convert the CNY amount(Revenue & Material Costs) at the rate applicable for the scenario
2. Each scenario, find the variable expenses which is 20% of total revenue
Scenario 1 | Scenario 2 | Scenario 3 | |||||
1 CNY | .15 SGD | 1 CNY | .2 SGD | 1 CNY | .25 SGD | ||
SGD | SGD | SGD | |||||
Cash In Flow | Revenue from SGD (A) | 200 | 230 | 250 | |||
Revenue from CNY (B) | 800(*.15) | 120 | 800(*.15) | 120 | 800(*.15) | 120 | |
Total Cash In Flow | TCI = A + B | 320 | 350 | 370 | |||
Cash Out Flow | Material Cost SGD (C ) | -180 | -180 | -180 | |||
Material Cost CNY (D) | -100(*0.15) | -15 | -100(*0.2) | -20 | -100(*0.25) | -25 | |
Total Material Cost (E=C+D) | -195 | -200 | -205 | ||||
Fixed Operating Cost (F) | -50 | -50 | -50 | ||||
Variable Operating Expense (G= .2*(A+B)) | 320*.2 | -64 | 350*.2 | -70 | 370*.2 | -74 | |
Interest Expense (H) | -30 | -30 | -30 | ||||
Total Cash Out Flow | TCO = E + F + G + H | -339 | -350 | -359 | |||
Net Cash Flow | TCI + TCO | -19 | 0 | 11 |
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