Cash Flow Forecast

Question 1

What is cash flow

Answer 1

Shows when cash is expected to flow in and out of a business over a period of time

Question 2

What are the two types of flows?

Answer 2

Inflows- money received from customers and other sources

Outflows-money paid to suppliers

Question 3

What are inflow examples?

Answer 3

Sales from products
Capital from owners
Bank loans
Grants

Question 4

What are outflow examples?

Answer 4

Payment suppliers 
Rent and rates 
Wages and salaries 
Power 
Advertising

Question 5

What are the uses of cash flow?

Answer 5

Businesses can tell if they need to invest more or less
Banks can see how money is flowing in the business
Businesses can plan whether to see if they can cut costs or increase revenue
Businesses can see if they want to expand or shrink

Question 6

What are positive and negitive cash flows called?

Answer 6

Positive - surplus

Negative - deficit