cash flow forecast Flashcards
1
Q
what is cash flow
A
money in and out of the business in a period of time
2
Q
what is a cash flow forecast
A
cash inflow - money expected to be coming in that month
cash outflow - planned payments for that month
net cash flow - cash inflow - cash outflow
opening and closing balance
3
Q
what are the uses of a cash flow forecast
A
getting goods to the market in shortest time possible
getting paid as soon as possible
keeping stock to a minimum - business not paying for stock they cant afford
4
Q
how can cash flow be improved
A
leasing equipment rather than buying
renting rather than buying
postponing expenditure
5
Q
what are the limitations of cash flow forecasting `
A
over/under estimate human error unexpected costs late payments machines breaking its only a prediction
