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Cash Flow
Forecasting BUSS1
This topic has
come up in
PART OF THE BUSS1 SPEC>>USING CASH FLOW FORECASTING summer 09
Jan 10
Jan 11

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What does this topic look at?
Nature of cash flow
How to forecast cash flow
Structure of a cash flow forecast
Significance of cash flow
Why businesses need cash flow.

What is cash flow?
Cash flow is the money flowing in and out of the business over a period of…

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How can you work-out the opening
balance? Jan 2010 question

Previous month closing balance Complete the cash flow forecast by
calculating missing figures for opening
What is the formula for net cash flow? balance & net cash flow (2)

Cash inflow (minus) cash outflow

What is the formula for the…

Page 4

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What is a cash flow cycle?
Stage 1 is the holding of cash

Stage 2 is the OUTFLOW of cash out of business to pay for raw materials

Stage 3 the transformation process takes place

Stage 4 is the return from trading




KEY TERMS
CASH FLOWthe amount of money flowing…

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