Cash+flow+lesson

=Cash flow forecasting=

To begin: Study the cash flow forecast below to complete the missing values for (a) to (e) - 5 marks



Solution

What are the key reasons for businesses having cash flow forecasts?
 * Activity - Discussion**:

What are the key headings? Discuss and list them...
 * Construction of a cash flow forecast:**

What are the main formulae? Work through 3.3.3 in Hoang - 10 minutes (extension - 3.3.4)

Work with a partner to answer this question exam style question. //Use the DEAD model!//
 * What are the 5 main causes of poor cash flow and cash flow problems? (10 marks)**

//**Home learning activity**// Create a leaflet that advises business owners how to improve their cash flow, you must include: //**Deadline: First lesson back after Activity Week.**//
 * Where to seek alternative sources of finance (review our first unit on this topic!)
 * How to improve the inflows
 * How to reduce the outflows
 * Explains the limitations of cash flow forecasting to make the business owners aware that whilst cash flow forecasting is essential for success, it is not perfect!