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Learn: Completing Sections of a Cash Flow Forecast
AQA GCSE Business 8132
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Welcome!You've already learned about cash flow and its importance for businesses. Today, we'll focus on how to complete sections of a cash flow forecast accurately.
What is a Cash Flow Forecast?A cash flow forecast is a document that predicts the inflows (money coming in) and outflows (money going out) of a business over a specific period. It helps businesses plan ahead and avoid cash flow problems.
Key Sections of a Cash Flow ForecastThe forecast includes three main parts: cash inflows, cash outflows, and net cash flow. It also tracks the opening balance and closing balance.
Quick check: What is the purpose of a cash flow forecast?
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Cash InflowsCash inflows are the money a business receives, such as sales revenue, loans, or investment income. Accurately estimating inflows is vital for planning.
Cash inflows include money from {{blank0}}, {{blank1}}, and investments.
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Cash OutflowsCash outflows are payments made by the business, such as wages, rent, and materials. Businesses must track these carefully to avoid overspending.
Which of the following are examples of cash outflows? (Select all that apply)
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Net Cash FlowNet cash flow is calculated by subtracting total cash outflows from total cash inflows. A positive net cash flow means the business has more cash coming in than going out.
Match the items on the left with their correct pairs on the right
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Opening and Closing BalancesThe opening balance is the cash a business starts with at the beginning of a period. The closing balance is the cash remaining at the end of the period, calculated as opening balance + net cash flow.
Match the items on the left with their correct pairs on the right
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Review Time!Great work! You've learned about completing sections of a cash flow forecast. Now let's test your understanding with a few questions.
What does a positive net cash flow indicate?
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The {{blank0}} balance at the end of a period becomes the {{blank1}} balance for the next period.
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Which of the following are sections of a cash flow forecast? (Select all that apply)
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Match the items on the left with their correct pairs on the right
Start the lesson to answer this math equation question
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