2.1.4 PLANNING Flashcards
1
Q
what’s a cash flow forecast
A
a document predicting the cash inflows and outflows at any one time
2
Q
formula for net cash flow
A
inflows - outflows
3
Q
formula for closing balance
A
opening balance + net cash flow
4
Q
benefits of cash flow forecasting
A
- help plan and manage finances
- help identify financial risks and funding needs in advance
- provides help in strategic decision making
5
Q
causes of cash flow problems
A
- overtrading
- allowing too much trade credit to customers
- unforeseen cots
