A Cash Flow Model for Magazine Subscriptions (UMAP)

In this module a matrix model is developed for projecting the quarterly cash flow of a magazine. Interpretations and variations of the model are discussed. Students learn how to use matrices to summarize and analyze information.

Table of Contents:

1. CASH FLOW PROJECTIONS

2. A MODEL FOR ALL SEASONS
2.1 Collecting Information
2.2 Planning Ahead with Matrices

3. PROJECTED RECEIPTS
3.1 New Subscribers
3.2 Renewals by Current Subscribers
3.3 Total Receipts

4. PROJECTED CIRCULATION
4.1 Copies Distributed to New Subscribers
4.2 Copies Distributed to Renewals
4.3 Copies Distributed to Nonrenewals
4.4 Total Circulation

5. PROJECTED DISBURSEMENTS

6. CASH FLOW FOR THE COMING YEAR

7. THE USEFULNESS OF THE MATRIX CASH FLOW MODEL
7.1 Revising the Projection
7.2 Modifying the Cash Flow Model to Handle Other Situations
7.2A Accommodating monthly magazines in the model
7.2B Accommodating more subscription categories
7.2C Accommodating deadbeats
7.2D Accommodating multiple-year subscription terms
7.3 Conclusion

8. THE IMPORTANCE OF MODELING IN THE PUBLISHING WORLD
8.1 Chalkbored's Model in Use

9. MODEL EXAM

10. ANSWERS TO EXERCISES

11. ANSWERS TO MODEL EXAM

SPECIAL ASSISTANCE SUPPLEMENT