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Lesson objectives
You should:
1) Know what cash is
2) Understand the difference between
cash inflows and cash outflows
3) Be able to produce a cash flow
forecast…read more

Slide 3

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Today's key words
Cash
Cash flow
Cash inflows
Cash outflows
Net cash flow
Opening balance
Closing balance…read more

Slide 4

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What is cash?
A business needs enough money in the bank
to pay the wages and pay any bills.
The money that a business has available to
pay the bills is called cash.
Cash is very different to profit ­ do not mix
the two up. Even a profitable business can go
bust, if it runs out of cash and cannot pay the
bills at the end of the month!…read more

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Why is cash so important?
The most common reason by new
businesses fail is because they have a
cash crisis.
This means that they run out of cash
and cannot pay the bills.…read more

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Cash and business
Cash flows in Business Cash flows out
Sales Wages
Grants Raw materials
Bank loans Tax
Start up capital Bills…read more

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Comments

davidsalter

This presentation looks like it was used in a lesson and covers all the important points about cash flow required for GCSE. Students should work through it and complete the blank spaces.

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