A weekly cash book, a cash ratio, a reserve count in weeks and a card-sales advance priced by hand, each on invented figures. The calculator itself works out level monthly loan payments only.
A cash book kept by the week, then the gap priced: reorders at a Chillicothe, OH clothing store
A cash book lists money in and money out by week, so the short week shows up before it arrives. In an invented case, a clothing store starts the month with $4,300 and plans a large reorder in week 4:
| Week | Cash in | Cash out | Balance at week end |
|---|---|---|---|
| Week 1 | $6,420 | $7,380 | $3,340 |
| Week 2 | $5,960 | $9,210 | $90 |
| Week 3 | $7,140 | $6,830 | $400 |
| Week 4 | $6,880 | $11,540 | -$4,260 |
The invented balance drops to -$4,260 in week 4, a shortfall of $4,260. The owner in this invented case also wants $3,380 left in the account, so the gap to price is $7,640.
Entering $7,640, a 13.15% annual rate and 6 months in the calculator on this page gives the monthly payment for that invented gap: $1,322.61. Six of those invented payments come to $7,935.66, with $295.66 of interest, and the cash book then needs a line for each one. What the payment, total and interest results mean, and what typing years into a months box does, is set out in an article on reading a loan calculator.
Cash ratio by hand: a Chillicothe, OH quick-service restaurant's cash set against its current bills
The cash ratio compares cash on hand with current liabilities, the bills due within the year. One number divided by another gives it, and the payment calculator here leaves it out.
In an invented case, a quick-service restaurant holds $18,400 in cash and owes $26,300 in current bills: food suppliers, payroll taxes and the next equipment payments. Its invented cash ratio is 18,400 divided by 26,300, or 0.70. Below 1.00, cash alone would not cover those bills if they all fell due at once.
ZIP Code Business Patterns counted 124 accommodation and food services establishments with paid staff at a ZIP 45601 address in 2023, and 18.5% of that ZIP count had fewer than five employees.
How many weeks of bills a cash reserve covers at a Chillicothe, OH clothing store adding security camera kits
A cash reserve is clearer in weeks than in dollars. In an invented case, a clothing store's fixed bills run $21,900 a month, or $5,053.85 a week once multiplied by 12 and divided by 52. Its invented reserve of $10,950 covers 2.2 weeks of those bills.
The store wants security camera kits priced at an invented $4,860. Paid in cash, they would cut the invented reserve to $6,090, or 1.2 weeks. Spread over 24 months at a 12.7% annual rate instead, the invented kits take $230.37 from each month's cash; that is $5,528.88 by the end, $668.88 of it interest, while the reserve keeps covering 2.2 weeks.
Plug-in camera kits are equipment; any wiring run into the building is property work outside this site.
Pricing a card-sales advance by hand for a quick-service restaurant in Ross County, OH
The calculator on this page works out loan payments, not advances. A card-sales advance takes three numbers from the offer and one from the business's own sales, and the math can be done by hand. Here it is for an invented quick-service restaurant weighing an advance to cover a cooler repair bill and a food order in the same week:
- Total collected: an invented $9,300 advance times a 1.26 factor is $11,718.00
- Cost: $11,718.00 minus $9,300 is $2,418.00
- Per business day: a 10% holdback on invented card sales of $1,240 is $124.00
- Length: $11,718.00 over $124.00 a day is 94.5, which rounds up to 95 business days
The merchant cash advance page has a calculator built for these four inputs, and the working capital page covers fixed-payment options for the same kind of gap.
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