Profit ≠ Cash
A fictional outdoor-equipment business. What changes when customers pay later?
Operating surplus
HKD 1,200,000No change from base case
Revenue × gross margin − operating costsMoney awaiting collection
HKD 1,479,452No change from base case
Receivables proxy, not an ending cash balanceThe base case: an annual surplus, with money still waiting to be collected.
Compare the numbers & methodology
| Measure | Base case | Scenario |
|---|---|---|
| Annual operating surplus (flow) | 1,200,000 | 1,200,000 |
| Average receivables proxy (stock) | 1,479,452 | 1,479,452 |
Annual operating surplus = revenue × gross margin − operating costs. Average receivables proxy = annual revenue × collection days ÷ 365. The fixed baseline is HKD 12m revenue, 35% margin, HKD 3m costs and 45 collection days. Calculations retain precision; displayed currency is rounded.
This is an annual steady-state operating and receivables sensitivity, not a full cash-flow forecast. It uses a 365-day convention and approximate steady-state receivables. It excludes seasonal cohort collections, inventory, payables, tax, capital expenditure, depreciation, financing and bad debt. It does not calculate actual ending cash or accounting net profit. It is not a credit decision or investment recommendation.
How this was built
Created in September 2026 as an AI-assisted prototype commissioned and directed by Rachel. This is new portfolio demonstration work, not client work or evidence that Rachel independently wrote or reviewed every line.
A small TypeScript data model uses pure calculation functions, automated boundary tests and labelled keyboard-accessible inputs. Calculations run in your browser using fictional data, without an AI API or account. Page links use ordinary browser navigation.