We're going to do a simple workout to calculate the cash receipts. This is part of the accounts receivable roll forward or base analysis. These are just exercises to help us understand the concept. These aren't directly related to the case. So if we move to the tab that says accounts receivable roll forward, what we see here is that we have a few different things happening here. We have a historical accounts receivable days calculation. This would be coming from, let's say a previously constructed 13-week cashflow model or perhaps just from data from the previous weeks that we got from management, and then we have an assumption for accounts receivable days for the next four weeks. We also have our ending historical balance for accounts receivable, and we have our sales forecast. So week one of this 13-week cash flow statement is beginning on April 18th, and we need to calculate what our cash received is going to be, but in order to do that, we're also going to have to use the accounts receivable days forecast to calculate our ending balance. So if we're solving for the cash received, we need to have the ending balance, because we can't solve for two variables. So my ending cash balance is going to be taking that account's receivable days formula and inverting it so that we're solving for the accounts receivable balance, not solving for the days. We have the days here. So it's going to be sales times accounts receivable days divided by the number of days in the period that matches the number of days of sales that we have. Well, here we have seven days' worth of sales, so we need to divide by seven. Now we can solve for our cash received. Our cash received is going to be the beginning balance, which goes up by the number of sales, goes down by X, and arrives at this number. It's going to be the ending balance minus the beginning balance, plus the sales. And this is saying that I received cash, which is why it's showing as a negative. It's reducing my accounts receivable. And if I just do a quick check of these three, it shows that those three do, in fact, add up to my ending balance. So now I can just copy these across the next four weeks. In the 13-week model, it would be across the entire model.

And we have our ending balance. So we see that accounts receivable is actually growing, and it's growing, it looks like, because the accounts receivable days is going up significantly and sales are flat at the same time. So it's taking us longer to receive cash. Cash is stalling, and as a result, our ending balance of accounts receivable is growing.