Cash Flow (Y10)

Y10A

Remote Learning

Thursday 7 Jan

Introduction to Cash Flow

Poll

Which franchise did you fancy buying?

• GymGuyz

• Glitter Pop Parties

• The Christmas Decorators

• Love Brownies

• KoKodoo

Cash Flow

• Cash flow is the movement of money in and out of the business

• Cash flows into the business as receipts, e.g. from cash received from selling products or from loans.

• Cash flows out of the business as payments, or expenses e.g. to pay wages, supplies and interest on loans.

• Net cash flow is the difference between money in and money out.

Lets start with an example

You will need a piece of paper - make two columns -

one titled 'cash in' and one titled 'cash out'

Open Ended

What is the total cash in?

Open Ended

What is the total cash out?

Open Ended

What is the net cash flow in this scenario?

Opening and Closing Balance

• The opening balance is the amount of money at the start of the period (it is always equal to the closing balance of the previous period)

• The closing balance is calculated by adding the net cash flow to the opening balance

Multiple Choice

Which one of the following is an example of a cash outflow for a small business?

• Bank loan

• Personal savings

• Raw materials

• Receipts

Fill in the Blanks

Calculate the cash outflow for January

Fill in the Blanks

Calculate the net cash flow for February

Fill in the Blanks

Calculate the closing balance for March