In my Week 3/Day 2 message I gave the example of a company with $1M in expected May sales and how they forecast receiving $500k in cash during the Month of May. To add to this example, lets assume they started May with a Cash Balance of $200k, and have forecasted Cash Outflows of $450k. The May forecast would then look like:

 Starting Balance: $200,000 

Expected collections: $500,000

 Expected disbursements: $450,000

 Ending Cash Balance: $250,000

What would happen however if the forecasted outflows -the total bills due- was $750,000 instead of $450,000?