Pages in this set

Page 1

Preview of page 1
UNIT 1 ­ Planning & financing a business
Financial planning Revision notes

USING CASH-FLOW FORECASTING

The nature of cash flow:
Cash flow: The amounts of money into & out of a business over a period
Page | 1 of time.
Below is the pattern of inflows (money coming into business)…

Page 2

Preview of page 2
UNIT 1 ­ Planning & financing a business
Financial planning Revision notes

Study similar businesses e.g.
Sources for cash-flow competitors
forecasting: Establishing the level of
resources needed
Previous cash flow forecast
Page | 2 Banks
Cash flow statements
Consumer research
Consultants
The cash flow forecast itself




Problems in cash flow…

Page 3

Preview of page 3
UNIT 1 ­ Planning & financing a business
Financial planning Revision notes

Constructing a cash flow forecast



Page | 3




Why businesses construct a cash flow
To identify potential cash-flow problems in advance
To guide the firm towards appropriate action
To make sure that there is sufficient cash available to…

Comments

davidsalter

Report

This is a 4 sheet summary on cash flow forecasting that covers the basics and includes a test. It could be used for revising or adapting for your own revision purposes.

Similar Business Studies resources:

See all Business Studies resources »See all resources »