Benefit= cash Flow Forecast

Question 1

1

Answer 1

The business may experience fluctuations in sales (why-relate to the case

Question 2

2

Answer 2

This may mean that they experience a reduction in cash inflows at a certain times (relate to the case study

Question 3

3

Answer 3

So if they can accurately forecast cash flow, the business may be able to plan accurately

Question 4

4

Answer 4

Such as reducing their staff numbers if they forecast lower cash inflows during these periods (or pick an outflows significant to the business in case)

Question 5

5

Answer 5

Allowing them to reduce their wages and subsequent cash outflows

Question 6

6

Answer 6

Improving net cash flow during off-peak seasons and ensuring they have sufficient levels of cash to keep up with essential payments such as wages