cash flow

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inflows
sales revenue, capital, loans, grants
1 of 9
outflows
purchases, rent, rates, wages, salaries
2 of 9
regular inflows
make it easier to plan, customers pay regularly
3 of 9
irregular inflows
difficult to [redict, large impact on cash flow, customers not paying regularly
4 of 9
regular outflows
make planning easier since the bussiness is expected to spend the money
5 of 9
irregular outflows
can create problems for the business as it is unexpected, replacing machinery
6 of 9
cash flow forcast
receipts- records what the business expects to recieve, net in/outflow- the difference between reciepts and payments, payments- what the business expects to spend
7 of 9
rules of cash flow
nothing about profit, the closing balance of one month is the opening balance of the next, a negative closing balance does not mean bankrupt
8 of 9
vital to business
identifies problems before they happen, plan to use excess cash, help to plan a project with minimal borrowing, help support applications for borrowing
9 of 9

Other cards in this set

Card 2

Front

purchases, rent, rates, wages, salaries

Back

outflows

Card 3

Front

make it easier to plan, customers pay regularly

Back

Preview of the back of card 3

Card 4

Front

difficult to [redict, large impact on cash flow, customers not paying regularly

Back

Preview of the back of card 4

Card 5

Front

make planning easier since the bussiness is expected to spend the money

Back

Preview of the back of card 5
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