Cash Flow Forecast

Cash Flow Forecast

NCFE Level 1/2 Business and Enterprise

​Cash Flow Forecast

A Cash Flow Forecast is a form of budget, and is a very important Business document as it shows when cast is expected to flow into and out of a business over a period of time. This helps a Business highlight when and where funding needs arise.

Multiple Choice

A cash flow statement shows an overview of money flowing in and out of a company

• True

• False

Multiple Choice

Which of the following is an example of a cash out-flow for a business?

• payments to creditors
• sale of goods
• payment from debtors
• receiving a loan from the bank

Multiple Choice

Which of the following is the value of x?

• £2

• £4

• £6

• (£2)

Multiple Choice

Which of the following is the value of y?

• £4

• £6

• £9

• (£9)

Multiple Choice

Which of the following is the value of z?

• £2

• £5

• £(15)

• £(5)

Multiple Choice

A firm is forecast to have a negative closing bank balance. Which would reduce the problem?

• sell more goods on 4 months credit
• produce more goods
• ask customers to pay in cash and not sell goods on credit
• ask suppliers if the firm can pay for goods in cash

Multiple Choice

If a cashflow forecast suggests that a firm will run out of cash, which would help the problem?

• purchase more fixed assets
• repay a bank loan
• pay suppliers immediately
• delay paying suppliers

Multiple Choice

The monthly net cash flow for a business is calculated by:

• sales revenue - cost of goods sold
• total cash in - total cash out
• total cash out - total cash in
• total cash in - cost of goods sold

Multiple Choice

What is the money available to pay for day to day operational costs called?

• Cash

• Working capital

• Profit

• All of the above

Math Response

Work out Septembers Cash Inflow figure (1)

Type answer here

Correct Answer: 27

Deg^°

Rad

Math Response

Work out Augusts Net Cash Flow Amount (1)

Type answer here

Correct Answer: -4

Deg^°

Rad

Math Response

Work out Octobers Closing Balance Figure (1)

Type answer here

Correct Answer: 40

Deg^°

Rad