Business: Forecasting Cash Flows 

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  • Business: Forecasting Cash Flows
    • Closing balance
      • the amount of money in a busniess at the end of  a month ( net cash flow + opening balance)
    • cumulative cash flow
      • the sum of cash that flows into the busniess over time.
    • inflows/receipts
      • e/g  money from owners,bank loans or cash from sales
    • outflows/payments
      • e.g wages, raw materials, intrest on loans,advertising on bills
    • net cash flow
      • the receipts of a busniess minus its payments, either positive or negative
    • opening balance
      • the amount of money in the busniess at the start of a money
    • RECEIPTS add net cash flow and total payments
    • PAYMENTS a missing payment can be found by adding up the rest and taking it away from total payments
    • TOTAL PAYMENTS add up all payments or subtract net cash flow from receipts
    • NET CASH FLOW subtract total payments from receipts or deduct the closing balance from the opening balance
    • OPENING BALANCE this is always the previous months closing balance
    • CLOSING BALANCE add the net cash flow to the opening balance


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