| Course | GF583 Treasury Management I |
|---|---|
| Unit | Unit 5 |
| Paper type | Weekly cash forecast |
| Length | About 890 words, 6 pages double-spaced |
| Format | APA 7 student paper |
| School | Purdue University Global |
| Program | MS in Finance |
| Updated | October 2026 |
Free sample paper for GF583 Unit 5
Thirteen Columns and a Collection Curve: A Unit 5 Weekly Cash Forecast Through a Spring Build
[Student Name]
Purdue University Global
GF583: Treasury Management I
Unit 5 Weekly Cash Forecast
[Instructor Name]
[Date]
The distributor and every figure are composite and illustrative, in millions of dollars; the articles and textbook cited are real.
Purpose
The treasurer needs to know how much the company will borrow on its $250 million revolving credit line through the spring vaccine season, and in which weeks, so that surplus cash can be invested and borrowing arranged without surprises. All figures are in millions of dollars.
Assumptions
Opening cash: 26.0. Minimum cash balance by policy: 12.0. Any shortfall below the minimum is borrowed on the revolver; any excess above it repays borrowing first.
Invoiced sales: 44.0 in week 1, rising 1.6 a week through the spring build to 56.8 in week 9, then easing to 54.0, 50.0 and 46.0 in weeks 10 to 12 and 13.
Collection curve. From twelve months of history, 8 percent of a week's invoices are collected one week later, 22 percent after two weeks, 30 percent after three, 20 percent after four, 12 percent after five, 6 percent after six and 2 percent after seven. Invoices before week 1 ran at 44.0 a week.
Supplier payments. Purchases equal 84 percent of sales and are paid five weeks after the related sales week, reflecting the company's buying lead time and payment terms.
Operating expenses: 5.2 a week. Payroll: 9.4 every other Friday, in weeks 1, 3, 5, 7, 9, 11 and 13.
Week-seven items: a 38.5 vaccine invoice for pre-season stock and an estimated tax payment of 11.2.
The Forecast
Each line gives receipts, total disbursements, net cash flow, ending cash after borrowing or repayment, and revolver balance.
1. Week 1: receipts 44.0, disbursements 51.6, net negative 7.6, cash 18.4, revolver 0.
2. Week 2: 44.0, 42.2, positive 1.8, cash 20.3, revolver 0.
3. Week 3: 44.1, 51.6, negative 7.4, cash 12.8, revolver 0.
4. Week 4: 44.6, 42.2, positive 2.4, cash 15.3, revolver 0.
5. Week 5: 45.6, 51.6, negative 6.0, cash 12.0, revolver 2.7.
6. Week 6: 46.8, 42.2, positive 4.7, cash 14.0, revolver 0.
7. Week 7: 48.3, 102.6, negative 54.3, cash 12.0, revolver 52.3.
8. Week 8: 49.9, 44.8, positive 5.0, cash 12.0, revolver 47.3.
9. Week 9: 51.5, 55.6, negative 4.1, cash 12.0, revolver 51.4.
10. Week 10: 53.1, 47.5, positive 5.6, cash 12.0, revolver 45.8.
11. Week 11: 54.6, 58.3, negative 3.7, cash 12.0, revolver 49.5.
12. Week 12: 55.5, 50.2, positive 5.2, cash 12.0, revolver 44.3.
13. Week 13: 55.2, 61.0, negative 5.8, cash 12.0, revolver 50.1.
Reading the Forecast
A cycle measured on average balances, the approach recommended in work on liquidity analysis, puts the company's collection period near five weeks (Richards & Laughlin, 1980), and the forecast's receipts lag sales by about three weeks, so in a rising season the company pays for inventory before it collects for the sales that inventory produced. That gap, plus the 59.1 of payments in week 7, drives the peak. After week 7, borrowing stays between about 44 and 51 because sales have stopped rising but the heavy week-seven outflow has not been recovered within the horizon.
The peak comes from one Friday rather than from the season as a whole: without the vaccine invoice and tax payment landing on the same day, borrowing would peak at under $3 million and the spring build would largely pay for itself.
Why a Collection Curve Rather Than an Average
Applying an average collection period of about 35 days to every week would smooth receipts and understate the lag in a rising season. A curve built from history shows exactly how much of each week's sales arrives in each later week, which matters when sales change quickly. Research on cash forecasting has long favored distributed-lag receipt models of this kind for businesses with seasonal sales (Stone & Wood, 1977).
Sensitivities
If every collection arrived one week later, the peak would rise to about 61.1, nearly 9 more. If the vaccine invoice were paid on its due date electronically, as the disbursement memo recommends, the timing would not change, since the forecast already assumes due-date payment. If the manufacturer moved its pre-season due date into week 8, the peak would fall only to about 51.4, because the tax payment still lands in week 7 and the invoice merely shifts the borrowing a week.
How the Treasurer Will Use the Peak
The peak of about 52.3 determines two decisions. It sets the minimum committed line the company should keep, here far below the 250 available, and it identifies week 7 as the week when the treasury should hold no surplus investments that cannot be sold the same day. It also flags the vaccine invoice as the single item most worth timing carefully.
Variance Template
Each Monday the treasury will compare last week's actual receipts and disbursements with the forecast by line, explain any difference over 1.0 and roll the forecast forward one week. Research on corporate cash management stresses that forecasts improve mainly through this kind of disciplined weekly comparison (Kallberg & Parkinson, 1993).
Checks
Total receipts over thirteen weeks are about 637, consistent with invoiced sales lagged by the collection curve. The revolver never approaches its 250 limit.
References
Kallberg, J. G., & Parkinson, K. L. (1993). Corporate liquidity: Management and measurement. Irwin.
Richards, V. D., & Laughlin, E. J. (1980). A cash conversion cycle approach to liquidity analysis. Financial Management, 9(1), 32-38. https://doi.org/10.2307/3665310
Stone, B. K., & Wood, R. A. (1977). Daily cash forecasting: A simple method for implementing the distribution approach. Financial Management, 6(3), 40-50. https://doi.org/10.2307/3665255
What the GF583 Unit 5 assignment asks for
The fifth GF583 unit asks for a thirteen-week cash forecast. Set out every assumption before the table: opening cash, minimum balance, weekly sales, the collection curve derived from history, supplier payment timing, operating expenses, payroll dates and any large one-time items. Build the forecast week by week showing receipts, disbursements, net flow, ending cash and borrowing or repayment. Read the forecast: identify the peak, explain what drives it and what would change it. Explain why a collection curve is better than an average collection period. Run sensitivities on the assumptions most likely to be wrong. Describe how the forecast will be compared with actual results each week. Check that totals reconcile with the assumptions. Cite research on cash forecasting and treasury texts in APA 7.
How the GF 583 Unit 5 example is put together
A purpose statement opens the example, followed by assumptions for cash, sales, the seven-step collection curve, supplier payments, expenses, payroll and the week-seven items. Thirteen numbered lines give each week's receipts, disbursements, net flow, cash and revolver balance. A reading section explains the three-week lag, citing Richards and Laughlin, and the highlighted sentence shows the peak comes from one Friday. A section on why a curve beats an average cites Stone and Wood. Sensitivities show slower collections lifting the peak to about 61.1 and a shifted invoice date barely lowering it. A section explains how the peak sets decisions, a variance template cites Kallberg and Parkinson, and checks close the forecast.
Where the points sit in the GF583 Unit 5 rubric
Credit on a GF583 forecast depends first on complete, explicit assumptions and a table that follows from them. Graders check that receipts come from the collection curve applied to the right weeks, that disbursements match their timing assumptions, and that borrowing and repayment respect the minimum balance. The analytical share rewards a reading that locates the peak and its cause, sensitivities on the weakest assumptions and an explanation of how the forecast will be maintained. Instructors in the MS in Finance program value reconciliation checks. A clear layout and APA 7 entries for Stone and Wood, Richards and Laughlin and the treasury text complete the grade.
GF583 Unit 5 help: mistakes that cost points
Many GF583 Unit 5 forecasts apply a single collection percentage to each week's sales, which hides the lag that drives borrowing in a rising season. Others list figures without stating where they come from, so nothing can be checked. Borrowing is shown in a separate schedule rather than inside the forecast. One-time items are scattered across weeks without explanation. Sensitivities are skipped, or they change several assumptions at once. The variance process is missing, so the forecast cannot improve. For any business your case describes, keep the order: assumptions, the thirteen weeks, the peak and its cause, sensitivities, variance tracking and checks.
Get a GF583 Unit 5 example written to your instructions
Whatever the Unit 5 case hands over, sales history, payment terms, a payroll calendar or a starting balance, forward it with the rubric and whatever template the instructor posted. A custom forecast ties every row to a stated assumption and computes financing from the minimum balance, returned in 24-48h and free the first time. The paper above is an original model document written by our desk, not a submitted student paper and not an official Purdue University Global document.
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GF583 Unit 5 questions, answered
How many weeks should the forecast cover?
Thirteen, one quarter, is the common treasury convention and a frequent default in course prompts, but follow the length your assignment sets. Shorter horizons suit a firm under strain, where each week matters, and longer ones usually switch to monthly columns beyond the first quarter. Whatever the length, weekly columns should cover the period where timing decides whether cash runs short.
Where does a collection curve come from?
From the firm's own history: take several months of invoices, record the week each one was paid, then average the percentages collected at each lag. If the case supplies aging data rather than payment history, derive an approximate curve from it and say so. A curve stated with its source persuades a grader far more than a single average collection period does.
Should borrowing appear inside the forecast or after it?
Inside, as its own rows below cash before financing. Showing draws and repayments in the table lets a reader see when the line is used, how long each draw lasts and whether the forecast ends with debt still outstanding. Placing financing only in a note hides the number a lender or treasurer looks for first, which is the peak.
Where can I find a free GF583 Unit 5 sample paper?
This page holds a full GF583 Unit 5 thirteen-week cash forecast for a distributor, with a collection curve, weekly receipts and payments, a borrowing peak, sensitivities and APA 7 references.
What drives the week-seven borrowing peak?
A $38.5 million vaccine invoice, payroll and an $11.2 million tax payment fall on the same Friday. Without those items, borrowing would stay under about $3 million for the whole quarter.