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Course Library · Lesson 5 of 6
Money · Guided lesson

Compare cash actions and their costs

About 30 minutes · 8 reading + 22 practice and checks
Time includes reading, practice, and questions. Extra videos or further study are optional.
See this course’s project requirements

A rolling business cash plan with receipt timing, invoice follow-up, a base forecast, stress test, action comparison and actuals update.

Keep your working files in your own notebook or software. Save a private description, checklist, and work link in My Proof.

What to include

  • A four-week cash-receipts schedule.
  • A receivables status and follow-up log. A checked rolling forecast with its lowest cash point.
  • A late-payment scenario with a quantified cash gap.
  • A comparison of two cash responses and their conditions.
  • A complete four-week rolling cash handoff with actuals and assumptions.

Review and revise

Use these criteria to check your work and choose what to improve.

  • Calculations reconcile to the supplied records, with units and dates labeled.
  • Assumptions and missing information are visible, including the changed scenario.
  • The recommendation follows the evidence and explains an important limitation.
  • The six lesson outputs form a usable handoff that another learner can check.
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Before you begin

The idea in everyday life

Reset to Patch’s base forecast. Week 3 closes at $200 against a $400 target. Option A: move a $300 optional equipment purchase from Week 3 to Week 4 by agreement. Option B: receive a $600 Week 4 invoice in Week 3 with a 2% early-payment discount. Consider each separately.

The idea

A timing response may preserve cash while reducing margin or changing commitments. Show both effects.

Follow along

Compare cash actions and their costs — worked practice

A timing response may preserve cash while reducing margin or changing commitments. Show both effects.

Reset to Patch’s base forecast. Week 3 closes at $200 against a $400 target. Option A: move a $300 optional equipment purchase from Week 3 to Week 4 by agreement. Option B: receive a $600 Week 4 invoice in Week 3 with a 2% early-payment discount. Consider each separately.

  1. 1. Test deferral

    Add $300 to Week 3 cash and subtract it in Week 4.

    You should see: Option A Week 3 cash $500; Week 4 remains $1000.

    An agreed delay changes timing, not total cost.

  2. 2. Test discount

    Calculate 2% of $600 and net collection.

    You should see: Discount $12; early receipt $588.

    Faster cash has a cost.

  3. 3. Reforecast B

    Add $588 in Week 3 and remove $600 in Week 4.

    You should see: Option B Week 3 cash $788; Week 4 cash $988.

    The discount reduces total cash by $12.

  4. 4. Recommend

    Select A if deferral is agreed and equipment is unnecessary that week.

    You should see: A meets the target without a discount; document the dependency.

    Do not delay mandatory bills without agreement.

Now change one thing

A 3% early-payment discount applies to a $400 invoice. Enter net cash received.

Your work

What to finish

A comparison of two cash responses and their conditions.

Common mistake

Watch for this

Treating early-payment discounts as costless.

How can I tell I understand it?

Explain your calculation or classification and reproduce the changed case without copying the worked result.

Try 3 questions

Quick knowledge check

Answer all 3 questions. Get at least 2 right and the lesson completes automatically.

Not yet passed

You’ll get an explanation for each answer. Signed in? Your results save to your account.

1A 2% discount on 1000 costs how much?
2Which payment is suitable for a proposed voluntary deferral?
3A $200 payment moves from Week 2 to Week 3 without fees. Week 2 closing cash changes by?
0 of 3 answeredApply the lesson to a short question, then review the explanation.
5
Finish this lesson

Pass the check. We’ll save the progress.

Answer all 3 questions above and get at least 2 right. You can review the explanations and try again.

Go to the knowledge check
Optional course overview video · same video as Lesson 1
EdspiraThe Cash BudgetYouTube
Optional course overview

The Cash Budget

From Edspira. Watch here or open it on YouTube .

Optional course overview. Follow the written steps below at your own pace.
Tools, templates, and lesson sources

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Sources and further reading

Explore the references behind this lesson.

Managing Cash Flow: Participant Guide
Source & access notes · checked 2026-09-12

Inspected FDIC/SBA PDF hosted by Indiana, especially pages 6, 8–12 and glossary. Used cash timing concepts only; historical sample rates are not used.

Access: Public 20-page PDF; dated 2016, used for stable concepts rather than current rules.

Reuse: Link to the original. Free reading does not imply permission to reproduce the page; lessons and fixtures here are original.

Manage your business: finances
Source & access notes · checked 2026-09-12

Inspected finance section on receivables, payables and available cash.

Access: Public page inspected without a sign-in; linked services may have separate requirements.

Reuse: Link to the original. Free reading does not imply permission to reproduce the page; lessons and fixtures here are original.

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