cash flow forceasts

Question 1

what does it do

Answer 1

shows cash inflows and outflows of business

inflows-business receives e.g loans
outflows-business pays out e.g paying raw materials

Question 2

adv of cash flow forecasts

Answer 2

assures to managers that tthey have enough money to pay staff cmployees and enough working capital and can then make sure have overdraft if think may run ot at certain time

prove that busienss owners have doen their research and have iddea of where they are going to be in furture (normally include vacsh flow forecast in their business plan)

help firm assure they are not holidng too much casg

Question 3

dis of cash flow forcasts

Answer 3

hard to make for synaic makrtes where it can chnage freuqntly and htey will have to chnage it accordingly

can then be accurate, time consuming to make,