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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 time.…read more

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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 closing balance?
Opening balance (plus) net cash flow
Why do businesses forecast cash
Can plan, to see if the business cash outflow will exceed
cash inflow Jan 2011 question
Preparation for big expenditure
Evaluation…read more

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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
CASH FLOWthe amount of money flowing in and out of the business in a
given period of time.
CASH INFLOWSthe amount of money coming into the business at a given
period of time usually from trading e.g.…read more


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