cash flow forecast Flashcards
1
Q
what is cash inflow
A
money into the business each month
2
Q
what is cash outflow
A
planned payments for the month
3
Q
what is net cash flow
A
inflow - outflow
4
Q
what are the uses of a cash flow forecast
A
getting goods to the market in the shortest time possible
getting paid as soon as possible
to keep stock to a minimum
5
Q
how can a bad cash flow be improved
A
leasing equipment instead of buying
renting instead of buying
postponing expenditures
6
Q
what are the limitations of cash flow forecasting
A
over or under estimations human error unexpected costs late payments machine breaking its only a prediction
