Cash-flow forecast Flashcards
1
Q
What is a cash flow forecast ?
A
A useful financial statement that a business uses to monitor monthly cash-flow, helping them keep an eye on finances and identify areas of concerns
2
Q
What is the meaning of cash inflows/outflows ?
A
Inflows - money going into a business (sales revenue, cash in hand, bank loan)
Outflows - money going out of the business (rent, wages, utilities, bank loan repayments)
3
Q
How to calculate closing balance and opening balance ?
A
Opening balance = inflows + outflows - closing balance
Closing balance = inflows + outflows + opening balance
